Industry focus: Funding the future of energy

Grannenfelt Finance is proud to have been an early supporter of several new energy technology companies and energy projects in this era of green transition. With energy independence and an acceleration of the green transition on the cards this year we see the funding market for new energy projects developing quickly – yet still with big challenges.

SMEs in the demonstration and scale-up stage face challenges with traditional growth and infrastructure investors and lenders. Although a green transition has been on the policy agenda for several year’s already, private investors are still risk averse on any new markets. 

Some of our biggest successes as a growth funding partner are in the energy sector. We have been active in e.g., wind and solar power projects, hydrogen, and biogas projects.  Over a few years, we have raised over 250 M€ of funding to projects and companies in the field (equity, debt, and public grant). Client includes e.g., P2X Solutions, Elcogen, Solarigo, Savosolar, Convion. We have built flexible funding solutions including with investment from international infrastructure funds, the European Investment Bank, strategic investors, venture investors, family offices, banks, loan funds and grants at local and EU level.  

At this moment, our hearts go out to the people caught in the ongoing war in Ukraine. The aftermath of the humanitarian crisis as well as the economic and political sanctions will be felt for years to come. We are also aware that the market environment is causing concern amongst our clients and a wish to diversify funding sources.  

The changing energy landscape in Europe, with an accelerated green transition, and ambition for energy independence, will shake up the funding market for energy projects in the coming months. After an initial investor freeze, we expect funding activity to pick up and large investors to align their allocation policy to the new market environment.  

A multitude of EU and national grants together with soft-funding instruments will be made available to reach the target of energy independence in record speed. Policy instruments are expected to increasingly support the go-to-market and scale-up stage. As an example, there are currently several fuel cell and hydrogen-related grant calls open for proposals (deadlines in May and September 2022). Read more about them here.

The EU’s REPowerEU action will re-allocate EU funds to projects that accelerate a green energy transition and support European energy independence. Funding priorities include: 

• Green hydrogen and biomethane production and import 

• Energy efficiency, use of renewable energy sources and electrification

• Alternative green fuels for energy systems, homes, buildings, industry

• Solving infrastructure bottlenecks 

In this fast-moving environment we help you secure an optimal funding solution. We provide core expertise in bridging the gap between international investors and expansion-stage energy projects. To decrease risks and improve project bankability, we utilize private funding as well as public funding solutions such as grants, soft loans, loans, and equity. The need for a coordinated funding plan is highlighted in the energy sector where new projects and technologies are more likely to require public funding to be able to secure private investors.  

We continue to work actively with companies, investors and industrial partners in the energy area. Over the years we have seen a steady increase in investor allocation to so-called transition projects and we take it upon ourselves to bridge the funding gap between the maturing innovative technologies and investors – which are, in many cases, new to the field.  

Do reach out to our experts for any funding-related question or concern – We will be happy to discuss the possibilities. Our contact details can be found here.

Ps: If you can, do support organisations like the Red Cross, Unicef or others who do valuable work amid the humanitarian crisis in Ukraine and other parts of the world. For donations to the Finnish Red Cross Disaster Relief Fund click here.