CarbonSmart Conversations Recap: From Plans to Project Finance: Lessons for Carbon Removal Developers with Twelve and Fervo
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December 16, 2024
Flowcarbon hosted a dynamic and engaging webinar: “From Plans to Project Finance: Lessons for Carbon Removal Developers with Twelve and Fervo,” with experts and practitioners from Twelve, Fervo, and Stanford University.
The discussion, featuring industry leaders Jimmy Chuang, Dawn Owens, Madison Freeman, Martin Kessler, and moderated by Caroline Klatt, was an action oriented one about First of a Kind Financing (FOAK) for innovative decarbonisation companies. We touched on everything from securing capital and cultivating investor trust to negotiating offtake agreements — critical hurdles faced by carbon removal developers today. By sharing their wealth of insights and hands-on experiences, our panelists paved a clear path for emerging companies, equipping them with the knowledge necessary to navigate the complexities of scaling project financing.
Here are some key takeaways from the conversation but have a listen on the video below for all of the insights:
Lender Fit: Identifying lenders who understand your specific technology and business model is vital for project success. This tailored approach can lead to more favorable financing conditions.
Building Relationships: Strong relationships with lenders foster patience and understanding, which is essential for navigating the complexities of project development.
Credibility Matters: Establishing credibility with potential investors is vital. It can significantly impact the willingness of lenders to finance projects at competitive rates.
Importance of Agreements: Comprehensive offtake agreements can serve as a financial safety net, unlocking further financing opportunities by demonstrating demand and revenue potential.
Engagement with Validators: Collaborating with independent engineering firms and third-party validators is key to instilling confidence in your technology among investors and lenders.
TRL Alignment: Aligning your technology readiness level (TRL) with the right type of investor ensures that you are approaching those who are most likely to understand and support your project.
Stakeholder Education: Continuously educating stakeholders about your journey not only builds trust but also enhances the likelihood of securing essential project finance.
