Pucheng District Heating Project
The project involved a techno-economic due diligence process related to the acquisition of the electricity and heat production as well as electricity transmission and heat distribution business activities of certain energy company (confidential) in Finland.
The techno-economic due diligence process was divided into three phases:
- Phase 1: Pre-IM and the Pre-Virtual Data Room (“VDR”) Access
- Phase 2: Post-IM and the Pre-VDR Access
- Phase 3: Post-IM and Post-VDR Access
During the due diligence process a more accurate picture of the operations of the trade target was formed step by step. The process led to a successful company acquisition by the purchaser candidate (confidential).
Greenfield Consulting contribution to the project
Greenfield participated in the project in conjunction with Arup. Greenfield’s task in due diligence process was to evaluate the district heating operations of the trade target. Evaluation included capital investment and operational cost estimates as well as life-cycle cost calculations of the components related to the production and distribution of DH. In addition, district heating business prospects in different locations in Finland were assessed in relation to competing alternatives, such as geothermal heat pumps and small-scale decentralized solutions.
Based on the assessment, the financial parameters and prospects related to district heating operations were modified and used as input values in the overall financial model and valuation.
A.T.Biopower Co. Ltd (Thailand)
PEMF was one of the founding shareholders in the biomass fired power plant company A.T.Biopower Co. Ltd in Thailand. The project comprised the investment development process including full feasibility analysis, required permits, financing arrangements, EPC contract, power plant construction and establishing the company organization with key personnel and governance practices.
Inesco Oy (Finland)
As the Managing Director of PEMF, Mr. Lehdonvirta was responsible to develop and implement the business concept and company structure of Inesco. This included technical, financial and environmental feasibility, financial modeling and the founding documentation. After the company establishment, Mr. Lehdonvirta participated as a Board Member in hiring the key personnel and in establishing the key business procedures based on ESCO principle, including the structuring of project identification, sales, technical design processes, due diligence and commercial contracts for project delivery. PEMF exit in 2007.
NewHeat Ltd (Lithuania)
Newheat Ltd is an energy asset finance and contracting company (ESCO) providing investment services mainly to the municipal energy companies in Lithuania.
Newheat was established in 2001 by PEMF (majority shareholder) and JSC Silumos Ukio Servisas. As the Managing Director of PEMF, Mr. Lehdonvirta was responsible to assess, develop and implement the business concept and company structure of Newheat. This included assessing the technical, financial and environmental feasibility, financial modeling and the founding documentation e.g. the shareholders’ agreement and financing agreements. Later, as a Board Member and Chairman of Newheat, Mr. Lehdonvirta participated in hiring the key personnel and in establishing the key business procedures, such as project structuring, client credit analysis and commercial contracts for project delivery. PEMF exit in 2013.
Thai Biogas Energy Company Ltd
TBEC was founded in 2003 to develop, design, finance, construct and operate biogas projects for heat and electricity generation, using waste water discharged from agricultural industries as raw material.
PEMF was the leading sponsor and holds the majority in the start-up company TBEC. As the Managing Director of PEMF, Mr. Lehdonvirta was responsible to develop and implement the business concept and the company structure. Later, as a Board Member and Chairman of TBEC, Mr. Lehdonvirta had a key role in hiring TBEC’s key personnel and in establishing the key commercial contracts.