Possible and Actual M&A Deals in the LimelightBy Cas Biekmann | Thu, 09/23/2021 - 13:49
Potential M&A deals and sales transactions take the center stage this week. In other news, green finance’s attractiveness could lead to a green bubble. Green hydrogen and distributed generation receive a boost. Read this and more in the weekly roundup!
China Three Gorges Corporation (CTG) is considering to purchase X-Elio’s renewable energy assets in Mexico as a part of the company’s international expansion. X-Elio, a recognized Spanish developer of solar assets, has a Mexican project portfolio of around 535MW estimated to be worth around US$400 million.
Four Japanese companies are selling their stakes in Mexico’s power plant operator Falcon Holdings to the British Actis GP fund. The figure has not been disclosed. As part of the holding, Falcon owns several combined cycle power plants in the country with a capacity of 2.23GW, all of which have signed PPAs with CFE.
Central bank umbrella group Bank for International Settlements (BIS) warns that the sudden burgeon of ESG environmentally friendly-focused assets may be creating a green market bubble. This shift in corporate practice has led to an explosion in ESG-focused assets, which are presently valued at US$35 trillion, accounting for more than a third of all assets managed by professional banks and investment funds. Nevertheless, experts fear asset valuations might be stretched as a result of the demand.
Sempra Energy, prominent in the Mexican market through its IEnova arm, announced a charitable contribution of US$200,000 to GRID Alternatives, which will in turn install five solar projects on and of the grid to benefit 40 Mexican families.
Mexico’s federal government is searching for lithium deposits in 82 areas where its presence appears to be possible. Lithium must be mined since it is considered extremely valuable, among other reasons because it is a core component of batteries used in electric vehicles and energy storage.
The Mexican Hydrogen Association (AMH) has signed a deal with Hannover Fairs with the goal to jointly promote actions to benefit the spread of renewable energy, in particular green hydrogen.
Fitch considers the company’s outlook stable considering its low business risk as a result of predictable cash floes and a firm basis of PPAs.
Texas’ OCI Solar Power and CPS Energy have joined forces with automotive player Hyundai in a Memorandum of Understanding (MOU) to test recycled electric vehicle (EV) batteries for solar energy storage.
A group of European researchers led by the Lappeenranta University of Technology (LUT) in Finland has tried to assess the costs of large-scale solar-powered hydrogen electrolysis for companies by 2030. They predicted that its cost may drop between EU€0.02 to 0.05 in 2030. In 2050, this could drop by a further EU€0.01-0.027.