Commercial Due Diligence of investment into carbon storage
M&A Transactions – Environmental Products
The Engagement:
Commercial Due Diligence for investment into carbon storage by mineralisation
The Client:
Global infrastructure fund
The Challenge:
Assess the feasibility and business case in a carbon storage terminal
Duration:
Ongoing (2023-)
Transaction summary
- Reviewed commercial and technical documents for the client
- Assessed the commercial business model across the full value chain
- Provided an overview of the regulatory environment including regulations such as EU-ETS, voluntary carbon markets and CDR
- Reviewed customer profiles and key competitive environment for European CCUS
- Evaluated key success factors
Outcome
- Energex worked with the client to provide a clear assessment of the carbon capture and storage value chain and where the investment opportunity sat
- Working with key members of the client team, Energex conducted two management presentations and a site visit and answered submitted questions to provide a clear picture of the viability of the investment
- After client left the process due to resource constraints and the target proceeded with other investors, Energex will continue to support the client if they re-enter the process