In case you haven’t been paying attention or noticing the hockey stick curve on your recent utility bill, the cost of energy is skyrocketing. Due in part to surging demand from a world emerging from a pandemic, and coupled with the actions of a Russian thug suffering from a severe inferiority complex, consumers are beginning to feel the crunch in their wallets, and ambitious alternative energy suppliers are leaping at the opportunity.
As we saw last week with Berlin-based Zolar’s €100 million Series C round that’s squarely aimed at putting the power of solar in the hands of more and more residential consumers, Sweden’s geothermal projects backer Baseload Capital is stepping up to the plate.
Announced this morning, the Swedes have signed a €25 million convertible debt facility agreement with UK-based SDCL Energy Efficiency Income Trust plc (SEEIT) that will see a re-financing of Baseload’s “operational assets and assets in construction or late-stage development as well as to finance future pipeline projects”. The facility has a 10-year duration, after each drawdown, with the funds becoming eligible when the bond is redeemed.
Meaning that the firm isn’t waiting for traditional energy supplies (gas and oil) prices to shoot any higher before capitalising on its geothermal energy commitments in Iceland, Taiwan, Japan, and the U.S.
“We’re extremely excited because this facility enables Baseload to roll out projects faster and provide project financing to assets under development and construction,” commented Baseload CEO Alexander Helling. “It is optimally structured for a company like Baseload with a portfolio of geothermal assets in various development phases. SEEIT is an esteemed investment company listed on the London Stock Exchange and a constituent of the FTSE 250 with a strong focus on sustainability and ESG.”