Energy Transition Business Opportunity

Motivation:

A Canadian Private Equity company was exploring the opportunity to establish a new energy transition-focused Newco by acquiring a package of downstream and retail assets being marketed for sale in the United States and Canada. The assets included ethanol plants, bio-refineries and retail fuelling stations

A three-part assessment strategy was identified involving biofuels, CCUS, and electric vehicle charging infrastructure at retail outlets.

Our Approach:

Goal7 reviewed each asset, assessing potential options and infrastructure access and putting together a build-out strategy reflecting market developments and national/local policies. The key technology areas explored were co-location of CCS, renewable H₂, bio-diesel and bio-ethanol.

Review included:

• Overview of new energy solutions and policy landscape for specific territories, provinces and states
• Public domain review of asset information
• Assessment of each asset for compatibility with the energy transition strategy while also identifying other potential fits for re-purposing opportunities
• Use of geospatial mapping to rank and identify opportunities linking assets, location of feedstocks, export routes and other energy transition activities

Benefit and Impact: The project succeeded in creating an in-depth report on the energy transition opportunities for each of the identified assets. The report included three business cases:

• Base Case: Business as usual
• Short-term growth: Near-term opportunities. Appropriate government support is in place. Low Capital requirement
• Long-term build-out: Government support is anticipated in 2-3 years. Pilot/Pioneer stage technology. Target markets with solid growth. High Capital requirement

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