SEEIT, the first U.K.-listed investment company to invest exclusively in the energy efficiency sector, has agreed to finance a portfolio of geothermal projects owned by Baseload Capital Sweden through a €25 million ($26 million) senior-debt facility.
The debt facility will be used to finance the capex of existing and pipeline projects, with an initial expected drawdown of as much as €6 million ($6.3 million) at closing, to refinance current operational assets and assets in construction or late-stage development.
Baseload develops, builds and operates small-scale geothermal projects. Compared to conventional geothermal power plants, the technology uses low-temperature resources that are found at shallower depths, making them less operationally complex and less expensive to drill. The geothermal projects provide power and heat offtake to end users under long-term fixed price take-or-pay contracts with high credit quality offtakers, typically local utilities, municipa