FINANCING

Havkraft is determined to offer our customers a variety of ways to finance a power plant and even the supply of wave power. Through flexible and progressive solutions, we put the clients’ requirements first and offer them the solution they need. Some clients want the benefit of owning their own power infrastructure, and such clients wish to buy the powerplant. Other clients are interested in flexible leasing options, which we can provide together with our financial partners. Others still only wish to buy wave power in the same way they buy land-based power through a Power Purchase Agreement (PPA). All three financial options will be offered, and other financial models will be added. This makes it possible for Havkraft to give a quotation for any request.

Direct purchase
All our solutions can be purchased as a direct purchase from Havkraft. This model will give the customer ownership of the system and all future profits from day one. On the other hand, it is also capital-intensive at the time of purchase. Other financing schemes are therefore also offered as an alternative.

Leasing
Our solutions can be leased with a leasing agreement from a secure financial institution. Here the bank pays for the product and your business manages it as its own. Your company uses the product against paying rent over an agreed period of time, typically 5 to 10 years, depending on size and client desires. We offer O&M agreements on leasing objects.

Advantages of leasing are:

  • Autonomy of working capital that can be used for other purposes.
  • Easier budgeting, as the rent is expensed in full.
  • Security is taken in the equipment, and it does not bind the company’s other mortgage securities.
  • Better liquidity, as the costs are distributed over the time the equipment is used and creates earnings. Impairment of the equipment in step with the depreciation of the equipment.
  • Larger tax deductions for leasing than loans, as the total depreciation for loan financing is lower than the total rental costs during the rental period.

Power Purchase Agreement (PPA)

A Power Purchase Agreement (PPA) is an agreement that ensures the customer a guaranteed price for energy access throughout the agreement period. It is a long-term and safe alternative to the existing system at a lower price, and with green properties. Customers often need greater predictability in the cost flows from their power consumption. Fluctuations in supply and demand in the market and tax levels mean that costs vary greatly. Under these conditions it is difficult to predict what the costs associated with power will be.

When agreeing on a Power Purchase Agreement, the customer will have a local renewable power source connected to its plant that delivers directly to the consumer. With a lower alternative cost than fossil fuels and a renewable production source, this is ideal for customers with a sustainability strategy and a desire to participate in the green transition.

Sparebanken Vest is our main banking contact, a bank that is focusing strongly on sustainability. Havkraft’s bankability will provide bankable clients with great financing opportunities, both in high-risk early stage projects and in future mature projects.
Eksfin and Innovation Norway offer us risk decreasing financing, such as risk loans and guarantees.