Methanol, SAF and storage portfolio study for an infrastructure fund
Infrastructure Services – Energy Transition
The Engagement:
A multi-phase assignment which first assessed the methanol and SAF market in Europe then evaluated terminal portfolios, asset by asset and overall corporate assessments.
The Client:
Infrastructure fund
Duration:
2 months
How Energex helped:
Terminal Assessments
- Energex conducted portfolio analysis of 4 selected global and European storage portfolios for our client, this included the market dynamics and outlooks surrounding the terminal locations and how this is likely to develop in the short, medium, and long term
- Conducted an asset-by-asset overview assessing the terminal itself, local dynamics, and positioning in competitive envelope
- Evaluated the existing energy transition projects of the portfolio and those they could be well placed to participate in
- Conducted a corporate level assessment including the management team, high-level strategy, and SWOT analysis of each of the portfolios
SAF and Methanol Market Study
- In parallel to the terminal assessments, Energex supported our client in exploring a potential European SAF project through a methanol / SAF market report which included:
- Mapping the low carbon methanol and SAF supply chains and market drivers with emphasis on the regulatory environment of both EU mandates and voluntary targets such as airline strategy
- Analysis on outlooks of low carbon methanol and SAF including: supply and demand, cost analysis and production mapping
- End-market analysis of the low carbon methanol market including sector
- Mapped the competitive landscape for SAF production within Europe highlighting the positioning of the potential target asset
- Assessment of the risks/ implications and potential mitigations of the target asset based off the market and competitive environment highlighting common risks and pitfalls from similar projects
Tangible Impact:
- Our methanol and SAF market analysis allowed our client to understand the market dynamics outlooks and competitive environment surrounding their target project. It also made them aware of potential market related risks and mitigations that could impact the project
- The SAF and methanol workstream provided the client with a detailed understanding of current and emerging market dynamics, offering critical insights into pricing structures, regulatory mandates, production capacity, and supply-demand fundamentals—ultimately informing the high-level viability and strategic positioning of SAF projects in Europe
- The terminals portfolio assessment allowed the client to gain a comprehensive understanding of both the overarching portfolio dynamics and corporate strategy as well as delivering more granular asset level insights that highlighted localised market conditions, helping to highlight stronger and weaker assets in the portfolios