SDCL shares gained 0.8% to 119.2p in late morning trading on Monday, after the energy trust reported a series of investments by its investment group SEEIT in Baseload Capital and Turntide in North America and Europe.
SEEIT announced a deal to finance a portfolio of geothermal projects owned by Baseload Capital Sweden through a €25 million senior debt facility, with a $10 million investment in the upcoming Series C round of financing for California-based sustainable technology company Turntide.
The firm also completed follow-on investments into its existing projects in support of the roll-out of new sites and further funding for construction.
SEEIT has reportedly invested £19 million into Onyx, Sparkfund, Tallaght, EVN and Biotown since 31 March 2022.
The company commented that its Baseload Capital investment would finance the capex of existing and pipeline projects, with an initial anticipated draw down of €6 million at closing to re-finance a slate of assets both operational and currently in development.
Baseload Capital operates small-scale geothermal projects which utilise geothermal and waste heat resources at a lower temperature and shallower depth than conventional geothermal ventures, which reduces costs.
The geothermal firm is currently developing projects in Iceland, Japan, the US and Taiwan, with its current portfolio based in Iceland, the US and Japan.
“Baseload Capital provides heat and power generated locally from geothermal sources and is a great example of high efficiency renewable district energy generation,” said SEEIT fund manager Purvi Sapre.
“Our investment generates income straight away and, as such, contributes to meeting both SEEIT’s yield and total return targets.”
Turntide and SEEIT have reportedly signed a Term Sheet concerning the financing of a $100 million financing facility, which is set to see SEEIT finance the capex of future qualifying energy efficiency projects developed by Turntide, so the group can consequently deliver infrastructure as a service.
The firm currently manufactures energy-efficient motor systems that don’t require the use of rare earth minerals.
Turntide’s client base resides in the US, Canada, the UK and continental Europe, with the inclusion of several investment grade multinational companies.
SEEIT added that the financial agreement with Turntide aligned with its investment policy as part of its allocation of 3% of gross asset value to developers and operators of energy efficiency projects, on the basis of Turntide’s energy efficiency characteristics.
“SEEIT’s two new investments with Baseload Capital and Turntide will further diversify the portfolio by technology, industry and geography while also providing key infrastructure services in global efforts to achieve net zero,” said SDCL CEO Jonathan Maxwell.
“Turntide has the ability to achieve a significant reduction in global electricity consumption wasted by legacy electric motors in commercial buildings, agriculture and transport.”
“It is also well positioned to play an important role in the electrification of transport. SDCL considers the relationship with Turntide as an exciting long-term partnership and we look forward to working with them on many new projects in the coming years.”