Neoen plans $526mn IPO following Google wind deal
French renewables developer Neoen has registered for an initial public offering (IPO) set to be worth $526mn (€450mn) on the pan-European stock exchange, Euronext Paris.
The registration has been made with French watchdog AMF which will assess whether the IPO can go ahead.
Neoen, which was set up in 2008, has around 2GW capacity either in operation or under construction, with a further 1GW worth of secured projects.
The IPO consideration was announced by the company on Wednesday, and is set to fund future investment plans and growth in production capacity for Neoen, which currently possesses around $2.3bn worth of assets.
Earlier this month, Neoen was one of three companies to sign power purchase agreements (PPAs) with technology giant Google in Finland. The agreements totalled 190MW and together with WPD and CPC Finland, Neoen will produce energy to supply Google’s Finnish data centre in Hamina.
Discussing the PPA with Google, CEO Xavier Barbaro commented: “Supplying a leading multinational with green electricity in Finland, where renewable energy is encouraged, is completely in line with our strategy and our capabilities.”
He added: “Our customer base now includes several large companies as well as nation states and public authorities. By producing the most competitively priced renewable electricity locally, sustainably and on a large scale, we have become a world leader in energy transition and are proud to call Google a customer.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.