Vast political ambitions and a red-hot investor market have led COWI to establish a new department offering consultancy to investors, focusing on the preliminary phases of green energy projects.
"The market for investments in green energy projects is seeing rapid growth these years, and so are the scope and complexity of projects in general. Thanks to our in-depth expertise in all links of the value chain of green energy systems, our consultancy services can be very valuable to investors, even in their initial considerations," says Klaus Winther Ringgaard, Senior Vice President of COWI's Energy International unit.
As a consulting engineering company, COWI can make sure investors are well prepared by contributing the latest knowledge about energy technologies, their place in the energy system and the socio-economic impacts of projects.
Most recently, COWI advised Danish fund manager Copenhagen Infrastructure Partners on setting up a bioenergy fund, and assisted pension fund ATP and energy company NRGi prior to their investment in geothermal energy company Innargi.
"In the past year, we have seen a distinct increase in the number of investors that come to us looking for assistance in due diligence and other services in the early phases of large-scale energy projects. To better help our customers make the right investments, a dedicated department will provide this part of our services," says Klaus Winther Ringgaard.
Backed by the broad technical capabilities of the almost 7,000 COWI employees, the new department can be a one-stop-shop for investors who need to swiftly determine whether the business case for a project looks good, or who need help to perform due diligence prior to acquiring businesses in the energy sector.
Useful input since the green investments will pick up speed in the coming years.
Due to the invasion of Ukraine and the uncertainties related to Europe's energy supply, the European commission recently launched its extensive REPowerEU plan. Measures included in that plan alone will direct more than DKK 2,200 billion in public and private investments to the energy sector towards 2027.
Furthermore, the newly signed Esbjerg Declaration – under which four countries, including Denmark, agree to install 150 GW of offshore wind energy in the North Sea towards 2050 – is estimated to require investments of up to DKK 2,000 billion.
In light of such massive investment sums, many new types of investors are expected to enter the energy sector.
"Now that the accelerator is floored for the green transition, it's important that the money is spent where it drives the green transition the most. The new department will help do just that, while facilitating the necessary high speed of transition," says Klaus Winther Ringgaard.
The new department, Deal Advisory and Due Diligence, is part of COWI's Energy International unit and based at the Lyngby head office. Staffed by a range of specialists from a broad palette of COWI's different units, the department is currently recruiting several new colleagues externally.
The department is headed by Lars Toghill, who previously worked at Vestas, playing a key role in its business development. He brings with him solid experience in due diligence, mergers and acquisitions as well as holds broad experience from the entire energy value chain, gained through his previous employments with Vestas and management consultancy company QVARTZ/Bain & Company.
Deal Advisory and Due Diligence officially opened for business on 1 June.