Renewable Energy Companies Looking at Going Public at Least Partly; Using SPACs to Test the Investment Water. Past Failures Cause Market Hesitation.

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SITUATION:
Clean Energy Investors using Special Purpose Acquisition Channel (SPACs) to consider going public.
Seeking to transition Renewables into Wind and Solar using investor money.
Failure of renewables companies in 2013-2015 is making transition investment hard.
Private capital is searching for more certain, high returning energy market.

SIGNIFICANCE:
Large privately held renewable companies in Wind & Solar now private.
Realize that going public for renewables has not worked in the past.
Tax advantages have primarily gone to gas & oil through limited partnerships.
Now less incentive to public than if in oil and gas.

SOLUTIONS:
Reportedly as many as 16 SPACS seeking to promote this energy transition.
Public markets tend to favor rapid growth companies.
SPACs want to buy companies with hockey stick shaped business plans.
SPACs like energy storage, distributed electric grid, zero emission–
Plus transportation & carbon capture companies.

What is a Special-purpose acquisition company?
A special purpose acquisition company, is a “blank check” shell corporation.
Designed to take companies public without going through IPO process.
SPACs allow retail investors to invest in private equity type transactions.

SOURCE:
Wall Street Journal October 22 issue – Renewable Wont be Easy for SPACs – https://www.wsj.com/articles/spacs-will-have-a-tough-time-cleaning-up-on-renewables-11603278180

WHO ARE SOME OF THE PLAYERS IN RENEWABLES INVESTMENTS?

Those Gone Public:
NextEra Energy
Brookfield Renewable Partners
Clearway Energy
Invenergy

Still Privately Held Renewable Companies:
Apex Clean Energy
8minute Solar Energy

SPAC Investors:
Marathon Capital
ArcLight Clean Transition

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