Public Commentary: The material below outlines FG Capital’s approach to Energy-Efficiency carbon projects. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
EE Carbon Projects – Energy Efficiency Project Structuring & Carbon Credit Advisory
Upgrading industrial processes, commercial buildings, and district-energy systems delivers immediate emissions savings with minimal land footprint. By rigorously measuring avoided consumption against credible baselines, these interventions generate certified emission reductions (CERs or VERs) that complement utility savings. FG Capital provides integrated structuring, capital raising, and market-access services to translate efficiency gains into long-term revenue.
Project Scope
• Industrial Process Optimisation:
Variable-speed drives, waste-heat recovery, and advanced control systems.
• Building Retrofits:
High-performance glazing, insulation upgrades, and smart HVAC automation.
• Lighting Conversions:
LED replacements with networked controls for occupancy and daylight sensing.
• District-Energy Enhancements:
Thermal-storage integration and low-temperature distribution loops.
• Cogeneration & Fuel Switching:
High-efficiency CHP installations and substitution of high-carbon fuels.
Advisory Process
1 | Baseline & Additionality Verification
• Metered energy data and engineering models to establish business-as-usual consumption.
• Alignment with methodologies such as AMS-II.D, AMS-II.E, or equivalent Gold Standard frameworks.
2 | Financial Structuring
• Energy-Savings Performance Contracts (ESPCs), shared-savings agreements, or on-bill financing.
• Advance credit purchase agreements to underpin repayment schedules.
3 | Implementation Oversight
• EPC selection, performance-guarantee negotiation, and commissioning protocols.
• Measurement & Verification (M&V) plans compliant with IPMVP standards.
4 | MRV & Verification
• Continuous data logging, periodic third-party audits, and registry submissions.
5 | Credit Monetisation
• Forward credit placements with investment-grade counterparties.
• Secondary-market trading support following issuance.
Indicative Financial Parameters
| Metric | Typical Range |
|---|---|
| Capital Intensity (USD / tonne CO 2 e avoided) | 3 – 15 |
| Payback Period (energy savings only) | 3 – 6 years |
| Forward Credit Price (Year 0, USD / t) | 7 – 11 |
| Target Equity IRR | 12 % – 16 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Energy-Savings Loan | Assignment of utility-bill savings; equipment lien | SOFR + 250 – 325 bps | Commercial banks, green-bond investors |
| Subordinated Credit Facility | Second-lien on project assets | SOFR + 450 – 600 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 9 / t | Corporate sustainability desks |
| Sponsor Equity | Residual cash flow | Target IRR 12 % – 16 % | ESCOs, building owners |
Stakeholder Benefits
- Facility Owners: Reduced operating costs and potential asset-value uplift.
- Credit Purchasers: Access to verifiable avoidance credits with transparent provenance.
- Investors: Predictable cash flows supported by energy-cost savings and carbon-credit upside.
- Communities: Lower local emissions and improved air quality.
Engagement
Organisations exploring energy-efficiency carbon opportunities are encouraged to contact our advisory team for a confidential discussion regarding feasibility, financing structures, and long-term market strategy.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be considered an offer to buy or sell any security, financial instrument, or service. Independent professional advice is recommended before acting on any information contained herein.
