Creative Financing & Risk Solutions with Patrick Gjelstrup Rosenquist, SVP of EIFO
Feb 27, 2024
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Interview with Patrick Gelstrup Rosenquist about creative financing in the hydrogen industry. Discussion on advantages of Export Credit Agencies. Overview of NZECA alliance for net-zero projects. Transition of banks to renewable energy. Exploration of innovative financing mechanisms and unconventional methods in energy initiatives.
Transitioning to support renewable projects with carbon capture technologies shows commitment to sustainability over traditional energy.
Export Credit Agencies are pivotal in advancing net-zero emissions, emphasizing hydrogen projects and sustainable financing practices.
Deep dives
Public Financing Shift Towards Renewable Projects
IFC has shifted its public financing focus away from funding fossil fuel projects that are unabated, opting to support those incorporating carbon capture technologies. This bold decision aligns with Denmark's ban on public financing for fossil fuels without abatement, reflecting a commitment to promoting renewable initiatives over traditional energy sources.
Global Reach and Flexibility of IFO's Project Financing
Despite partnerships with multilateral development banks, IFO is not restricted to any specific country, except those under sanctions. This flexibility allows IFO to engage in projects across the globe, supporting initiatives even in challenging jurisdictions where private financial institutions might hesitate. With a focus on renewable energy, especially wind, IFO's strategic approach aligns with Denmark's green transition goals while maintaining a niche in renewable energy project finance.
Climate-Conscious Financing Strategies of Export Credit Agencies
Export Credit Agencies (ECAs), including IFO, are collectively emphasizing a net-zero emissions approach by phasing out support for fossil fuel projects and prioritizing renewable energy initiatives, specifically in the hydrogen sector. This concerted effort aims to send a strong message to the financial community, highlighting a shift towards sustainable financing practices. By aligning with global sustainability agendas, ECAs are positioned to play a vital role in financing hydrogen projects and advancing the green transition.
Growth Prospects and Prioritization of Hydrogen Investments
IFO envisions hydrogen projects comprising 20-25% of its portfolio by 2030, with a continual growth trajectory thereafter. Emphasizing green ammonia and e-methanol projects as key growth drivers, IFO's strategic focus aligns with supporting gigawatt-scale projects globally. With a strong outlook on hydrogen development and financial backing from ECAs, the sector anticipates significant expansion and achievement of decarbonization goals.
This week Chris Jackson and Alicia Eastman interview a rising star in project finance - Patrick Gelstrup Rosenquist, Senior Vice President of the Danish Export and Investment Fund ("EIFO") and Patrick Molloy weighs in on the surprising advantages of Export Credit Agencies (“ECAs”).
About Patrick Gelstrup Rosenquist:
Patrick has worked for Denmark’s Export Credit Agency (EKF) and now EIFO for 15 years with a special focus on wind energy and Power-2-X. He is a renewable energy and infrastructure financing professional with expertise originating, analyzing, negotiating and structuring renewable energy assets. Key focus areas are export credits and international non-recourse finance for P-to-X projects worldwide.
About Export and Investment Fund of Denmark (“EIFO”):
EIFO is the national promotional bank and export credit agency of Denmark combined in one financial institution. It is the merger of three state funds – Vaekstfonden (The Growth Fund), EKF, and the Danish Green Investment Fund who all became subsidiaries under EIFO in January 2023.
About NZECA: Launched at COP28 in December 2023 the Net-Zero Export Credit Agencies Alliance (“NZECA) was launched by five founding and three affiliate members in partnership with Oxford, Future of Climate Cooperation, and the UN Environment Program Finance Initiative. Founding members include EKN of Sweden, EIFO, Export Development Canada (“EDC”), Svensk Exportkredit (SEK), and UK Export Credit. Affiliate members include Etihad Credit Export Insurance (“ECI”), Spain’s Export Credit Agency (“Cesme”) and KazakhExport. The Alliance unites leading public finance institutions committed to delivering net-zero economies by 2050 by supporting the decarbonisation of trade and facilitating joint action from public and private finance.