- Pacifico Renewables intends to expand the scope of its activities to evolve from a renewables native into the energy transition investment company of tomorrow
- New strategic initiatives should enable investments in other ready-to-scale green technologies beyond renewables and to explore capital solutions beyond Pacifico Renewables own balance sheet to open up to the full spectrum of opportunities offered by the rapidly evolving energy transition space and the company’s significantly expanded pipeline
- As part of one strategic initiative, Pacifico Renewables will acquire a 21.9% stake in clearvise AG and intends to increase this shareholding via a contribution in kind of its portfolio of solar and wind parks into clearvise AG against additional shares and cash in a second step, which would create Germany’s second largest listed public Independent Power Producer (IPP) with Pacifico Renewables as a strong anchor shareholder
Pacifico Renewables Yield AG, an independent producer of electricity from renewable sources, announced three strategic initiatives to expand its business model and allow it to evolve from a renewables native into the energy transition company of tomorrow. These initiatives consist of joining forces with clearvise AG, a German listed IPP with a wind and solar portfolio in several European countries, exploring capital solutions and investing in green technologies ready to scale. These initiatives will shift Pacifico Renewables’ focus beyond solar and wind projects and beyond deploying solely its own balance sheet in order to benefit from opportunities offered by the increasing global efforts to decarbonize our electricity system and Pacifico Renewables’ sizeable pipeline.
Beyond own balance sheet
As a first initiative, Pacifico Renewables is joining forces with clearvise AG. Pacifico Renewables entered into a contract with its majority shareholder, Pelion Green Future Alpha GmbH, to acquire its 21.9% stake in clearvise AG from Pelion Green Future and has signed a memorandum of understanding (“MoU”) with clearvise AG. Under the MoU, both parties intend to increase Pacifico Renewables’ shareholding via a contribution in kind of its European solar and wind parks against additional shares and cash into clearvise AG, which would create Germany’s second largest IPP with Pacifico Renewables as a strong anchor shareholder.
Joining forces with clearvise AG is a two-step approach. The first step is built on yesterday’s agreement with Pelion Green Future. The MoU paves the way for the second step, in which Pacifico Renewables shall increase its initial share in clearvise via a contribution-in-kind of its European solar and wind parks into clearvise AG against additional shares and cash, resulting in a long-term shareholding in clearvise AG of around 40%. This would allow both companies to benefit from significant economies of scale of a larger combined portfolio and pipeline.
Explore capital solutions
Building on its track-record of successfully and efficiently raising capital to finance its growth ambitions, Pacifico Renewables will explore capital solutions to channel even more institutional capital into the energy transition without limitations of the company’s own balance sheet. Associated fee income is intended to increase the company’s return on capital deployed compared to solely using its own balance sheet.
Dr. Martin Siddiqui, Co-CEO: “Making efficient use of capital has always been key for us. The cash-neutral acquisition of a 21.9% strategic stake in clearvise AG based on a favourable exchange ratio is another proof of us adhering to this principle. The charming feature of this transaction is twofold: (1) it is a good deal for us on a stand-alone basis and (2) it initiates one of our three initiatives to expand our business model. Our ability to structure deals and channel capital into the energy transition will remain key for us to successfully provide tailored solutions for investors. We are happy that our anchor shareholder supports us to take the next leap forward.”
The stake acquired in clearvise AG was supported by Arvantis Group’s renewable energy subsidiary Pelion Green Future. Jeremias Heinrich, Founder and Managing Director of the Arvantis Group: “We are committed to continuously support Pacifico Renewables to build a leading energy transition company. This step represents the beginning of a transition towards a broader business model, which is perfectly suited to benefit from a wide range of opportunities provided by the ongoing green energy revolution. Therefore, the exchange ratio of this transaction was only a secondary aspect for us.”
Invest in green technologies ready to scale
Since its stock market debut in 2019, Pacifico Renewables has built a strong track-record as a dynamically growing renewable energy company. While renewable energies will remain at the core of its business, Pacifico Renewables will broaden its activities to also tackle opportunities in other green technologies driving the energy transition that are ready to scale. Utility-scale battery storage projects were identified as the next focus area, as this technology will play a key role for the energy transition in the next years.
Christoph Strasser, Co-CEO: “We started off as a pure-play green energy producer with the ambition to accelerate the energy transition. The urgency to decarbonize our energy system quickly has never been greater, offering unprecedented opportunities going beyond wind and solar projects. Building on our green origins, growth track-record, experience, network and our young as well as dynamic team we are now ready to take the next leap forward: Going beyond renewables to evolve into the energy transition investment company of tomorrow.”
A comprehensive overview of the three initiatives can be found here: Link to homepage.
