ECN evaluates sustainable projects for the Amsterdam Climate and Energy Fund

Monday April 14, 2014 10:41

Amsterdam Climate and Energy Fund investments will be assessed for technical feasibility by ECN   PETTEN/AMSTERDAM - The Amsterdam Climate and Energy Fund (AKEF) will henceforth make use of the expertise of the Energy research Centre of the Netherlands (ECN) for evaluating investment applications in terms of sustainability and energy conservation. The revolving fund contains a total of 45 million euros, most of it originating from the municipality of Amsterdam, which must be used for saving at least 1.35 million tonnes of CO2.

Celebratory toast cooperation Akef / ECN

AKEF director Raymond Steenvoorden and COO Robert Kleiburg of ECN signed a contract for this technological due diligence on 8 April. ECN assesses projects for, among other things, technical feasibility and possible risks. AKEF director Steenvoorden: “ECN was selected because it has a reputation for being a highly valuable party that possesses all the knowledge and expertise related to this field. We need a partner that can, for example, make CO2 scans at short notice.”

The Amsterdam Climate and Energy Fund was established in October of last year in the Amsterdam Arena. On market terms, it funds projects costing up to 5 million euros that contribute demonstrably to energy conservation, sustainable energy generation and energy efficiency in Amsterdam. For example, it finances the 4,200 solar panels on the roof of the Amsterdam Arena – the second largest solar panel roof in the Netherlands – and invests in OrangeGas gas stations, where vehicles can be refuelled using gas made from biological waste and sewage sludge.

Each euro invested must result in a minimum annual CO2 reduction of 2 kilos. The available sum is sufficient to reduce the total CO2 emissions in Amsterdam by 1.35 million tonnes. This is equal to the average annual emissions of approximately 550,000 cars. Furthermore, the objective is to ensure that the sums with a minimum yield of 7 per cent return to the fund, so that these sums can be invested again once or twice (a so-called revolving fund).

Knowledge available for screening projects
The first projects to be screened by ECN involve biomass and techniques such as pyrolysis. COO Robert Kleiburg: “We possess a great deal of knowledge. We want to make our knowledge more widely available in order to accelerate the transition to sustainable energy management. Knowledge must circulate in order to improve the competitive position of the Dutch economy and for us to succeed in our ambition to reach the top 10 in clean technology.”

AKEF sets a good example for other municipalities and provinces
The 45 million euros that Amsterdam allocated to the AKEF was generated by the sale of its Nuon shares. The e3 consortium, which implements the investment policy on behalf of the fund, wants to do the same for other governmental bodies that have sold their shares in utility companies and allocated the money generated by the sale to sustainable funds. e3 has chosen ECN as its partner in order to assess the projects for sustainability and technical feasibility.

Steenvoorden: “ECN possesses a great deal of technical expertise. We know a great deal about investment risks and financial feasibility in the sustainable-energy sector. Together, we can initiate the energy transition that we believe is necessary.”

About ECN
The Energy research Centre of the Netherlands (ECN) is the largest research centre of its kind in the Netherlands. ECN develops knowledge and technology with and for industry and government, facilitating the transition towards sustainable energy management. With approximately 500 professionals, ECN is active in the fields of wind and solar energy, biomass, energy efficiency, environmental research and policy recommendations. ECN has set up a special service for technology due diligence to advise investors on the technical feasibility of sustainable projects. As such, ECN has an important role to play in society, now and in the future.

About the AKEF
The Amsterdam Climate and Energy Fund (Amsterdams Klimaat en Energiefonds) was established by the municipality of Amsterdam. The fund invests exclusively in projects relating to energy conservation, sustainable energy generation and energy efficiency that make a demonstrable contribution to the 2040 Amsterdam Energy Strategy. A small part of the investments will go to innovative companies. The investments must primarily be made within the municipality of Amsterdam and/or must demonstrably lead to CO2 reduction in this municipality. The investments must have a minimal yield objective of 7%. This yield is put back into the revolving fund and will be available for new investments, which ensures that more objectives can be achieved. The implementation of the investment policy of the Amsterdam Climate and Energy Fund is the responsibility of the e3 consortium. The fund will be managed by Privium Fund Management BV, which is supervised by the Financial Markets Authority (AFM).

Category: Corporate, ECN Units, Technology Due Diligence