Dickinson Energy Ltd secures funding for Using Wasted heat to generate electricity
Due to renewable energy drive PPA models have become mature and can be used to facilitate capital and BOT for WHR projects • Only Pay for electricity generated at a discounted rate • Improve your company image – Environmental, CO2 targets • Competitive edge • Stability of process • Mitigate risk In a recent development, Dickinson Energy Ltd recently secured funding for its cement plant waste heat recovery projects through a large institutional financing partner. The development means that all of Dickinson Energy Ltd.’s waste heat recovery projects are now eligible for turnkey project finance loans at low interest rates. Qualifying projects would have to meet prequalification specific requirements for (CO2 offset finance). Dickinson Energy Ltd is a member of Dickinson Group of Companies. The company primarily focuses on installation, operation and maintenance of Waste Heat Recovery (WHR) Power Generation technologies for different industries across sub-Saharan Africa. Industrial waste heat refers to energy that is generated in industrial processes without being put to practical use. The Waste Heat Recovery Technology entails capturing and reusing the waste heat from industrial processes and using it to generate electrical energy, as such this technology is classified as an energy efficiency initiative. Waste heat recovery technology can provide a significant part of manufacturing plant’s overall electricity needs. There are over 850 WHR power installations in the world. According to the International Energy Agency; “Energy efficiency is known to offer a powerful and cost-effective tool for achieving a sustainable energy future. Improvements in energy efficiency, can reduce the need for investment in energy infrastructure, cut energy bills, improve health, increase competitiveness and improve consumer welfare.” Nevertheless, due to financial constraints many energy efﬁciency projects with high return on investment remain unimplemented particularly in developing countries. To combat this challenge various business models have been developed and adopted globally to work around this lack of internal resources. Dickinson Energy employs one of the models for Waste Heat Recovery Projects; the Build, Operate and Transfer business model (BOT). The BOT model has been extensively applied in infrastructure projects and was employed in about 10% of WHR system installations worldwide. In the BOT model, the plant owner delegates the responsibility of design, construction, operation and maintenance of the WHR facility for a specified period to the WHR supplier. At the end of the concession agreement the facility is transferred to the owner. BOT enables clients to focus on core business, avoid large capital expenditure while they improve their efficiency and comply with environmental & government regulations.