Category: News

The partnership aims to develop up to 3GW of solar capacity and marks Gunvor’s expansion into the solar sector alongside renewable energy specialist Quercus

LONDON, Jul 01, 2024 / PR Newswire / — Gunvor Group (“Gunvor”), a leading global energy commodities trading company, together with Quercus Real Assets Limited (“Quercus”), the London-based renewable specialist focused on international investments within the Energy Transition, proudly announce a landmark solar development partnership that targets the development of up to 3 gigawatts (GW) of solar photovoltaic (PV) capacity in Italy.

Under the terms of the deal, Quercus will draw on its established track record of developing renewable projects—from permitting to “ready to build” status—and combine that with Gunvor’s ability to fund, manage, and optimize assets through power purchasing agreements (“PPAs”). The solar sites will be strategically located across all regions in Italy, granting Gunvor the option to acquire and enter into PPAs with the assets. 

“Gunvor’s first material investment in the solar space fully aligns with Nyera’s commitment to the Energy Transition and our ambition to build up a renewable power portfolio.” said Fredrik Törnqvist, Managing Director of Nyera, Gunvor’s renewables investment vehicle. 

The Italian solar market is among the most advanced in Europe, thanks to a well-developed regulatory framework and recent legislative changes that support the integration of solar infrastructure with agriculture.

 “Given the essential role of agriculture in the Italian economy, it is crucial to align solar investments with agricultural preservation to ensure long-term sustainability,” said Diego Biasi, co-founder and CEO of Quercus. “At Quercus, we have consistently invested in renewables to enhance our surroundings. I am pleased to collaborate with a prominent partner like Gunvor, sharing our values and advancing our successful investment initiatives.”

Aldo Della Valle, Gunvor’s Head of Power & Natural Gas Trading, added: “This landmark solar venture will further complement Gunvor’s recently announced intention to acquire bp’s Spanish powerplant and is another step in our strategy of building up a portfolio in Europe composed of conventional flexibility and renewable power positions to enhance our power and gas trading activities.”

The deal remains subject to regulatory approval and other customary closing conditions.

About Quercus Real Assets

Quercus Real Assets Limited is a renewable energy specialist focused on energy transition investments, with offices in London and Dubai.

Diego Biasi and Simone Borla founded Quercus by establishing a Luxembourg-based fund which successfully completed over €1bn in gross investments from inception in five different successful strategies. In January 2020, Diego Biasi started to steer Quercus’s business in response to the evolution of the energy sector into a more diversified strategic investment approach. Quercus has successfully completed over 40 deals up to date.

Since 2010 the strategy of the company has been founded on the belief that the creation of long-term environmental and social capital underpins and strengthens investors’ and shareholders’ returns. Quercus is committed to developing business opportunities and supporting responsible investments for sustainable income and capital returns while contributing to a carbon-neutral future.

About Gunvor Group

Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure — refineries, pipelines, storage and terminals — that complement our core trading activity and generate sustainable value across the global supply chain for our customers. The company, which in 2023 generated US $127 billion in revenue on 177 million MT of volumes. For more information, visit GunvorGroup.com.

About Nyera

Nyera, a wholly-owned subsidiary of Gunvor Group, is dedicated to identifying Energy Transition investments, including new sustainable commodities and businesses. Nyera’s trading and investment activities are performed on a commercial basis, and the company is deliberate in entering areas of opportunity that will ensure a sustainable long-term model. Current areas of investment include solar, biofuel, biogas, green hydrogen, renewable natural gas, and zero-emission maritime transportation, among other renewables-focused projects. For more information, visit Nyera.com.

Quercus pays profit participation coupon, following two early capital repayments, for the market first permitting development green bond. 

LONDON, 01 February 2024. Quercus Real Assets Limited (Quercus), the London-based renewable specialist focused on international investments within the Energy Transition, issued the first permitting development green bond in 2021 through one of its Luxembourg affiliates. The bond reached its expiry date on January 13 when Quercus paid the profit participation coupon following two early capital repayments in the second semester of 2023.

The bond was issued with a view to invest in the permitting process of solar photovoltaic projects in Southern Europe. Quercus, amongst other activities, concentrated mainly on the Spanish market and accomplished one of the largest transactions in the European solar industry since 2020 through the development and sale of a portfolio totalling more than 800 Mw of projects, which, at current prices, requires an investment of roughly 700 million euros in total capital expenditure to reach operational stage.

Diego Biasi, the Co-Founder and Chairman of Quercus, comments: “In a challenging climate both during and after COVID we successfully launched this Permitting Development Green Bond – which we consider to be a landmark transaction – and redeemed it ahead of schedule, in a comparatively short amount of time. Only those acquainted with both the renewables permitting development activity and the bond market can truly appreciate what a challenge we faced. We enjoy a challenge, and we managed to overcome all the obstacles of a peculiar economic period, particularly in our sector, to make this project a success. These obstacles ranged from long and unforeseen delays in the administrative process to an overcrowded renewable energy market where good quality investment opportunities are a scarce resource.”

The bond was launched during a period when interest rates were negative or close to zero, and a total return of 26% in less than three years shows a remarkable achievement for the English renewable energy house.

Quercus is expanding its permitting development activities in several regions of Southern Europe as a first step into the build-up of a new portfolio of solar plants operating at grid parity.

“We don’t know exactly how many gigawatts we will build and operate between Italy, Spain and Greece in the foreseeable future, we have an initial target of three. It depends on how the market develops and whether the regulatory framework will further change to facilitate investments.” Diego Biasi explains.

In addition to solar energy, Quercus is examining additional renewable energy market segments. Recently the company added two senior managers with experience in the fund investment and renewable infrastructure construction industry to its team in Europe.

About Quercus Real Assets:

Quercus Real Assets Limited is a renewable energy specialist focused on energy transition investments, with offices in London and Dubai.

Diego Biasi and Simone Borla founded Quercus by establishing a Luxembourg-based fund which successfully completed over €1bn in gross investments from inception in five different successful strategies. In January 2020, Diego Biasi started to steer Quercus’s business in response to the evolution of the energy sector into a more diversified strategic investment approach. Quercus has successfully completed over 40 deals up to date.

Since creation of Quercus over a decade ago, the strategy of the company has been founded on the belief that the creation of long-term environmental and social capital underpins and strengthens investors’ and shareholders’ returns. Quercus is committed to developing business opportunities and supporting responsible investments for sustainable income and capital returns while contributing to a carbon-neutral future.

Quercus accesses new and recurring funding source for its growing development business.

London, 2nd August 2022. Quercus Real Assets Limited, (Quercus), a renewable specialist based in London focusing on international investments within the Energy Transition, has reached its capital raising target of €33m for its maiden development bond.

The proceeds are being used to develop greenfield photovoltaic assets in Southern Europe with an initial focus on Spain and Italy. Quercus is targeting a development portfolio of approximately 1.5GW, twice the size of its last development portfolio (approaching 800MW) which was sold to investors in January 2022.  The first assets are expected to reach the ready to build stage in Q2 2023 at which stage Quercus will once again explore its strategic options in the market.

Quercus is currently marketing its second dedicated development bond that will look to mimic the successful strategy of its first offering.

Diego Biasi, the Chairman of Quercus, said: “We are delighted to close our first development bond at its target capital raise, representing a new asset class dedicated to a specific set of investors. Our chosen geographies of Spain and Italy build on the successful exit of our first Spanish development portfolio and is consistent with the new development strategy pursued by the Group. Our interest will, in due course, extend to other Southern European Countries and sectors within the Energy Transition.”

About Quercus Real Assets:

Quercus Real Assets Limited is a renewable energy specialist focused on energy transition investments, with offices in London and Dubai.

Diego Biasi and Simone Borla had founded Quercus by establishing a Luxembourg-based fund which successfully completed over €1bn in gross investments since inception in five different successful strategies. In January 2020, Quercus’s Chairman, Diego Biasi, joined forces with Marco D’Arrò, founder of the Real Asset Group (a capital advisory firm having raised €3.6bn of gross investments since its inception) to develop and steer Quercus’s business in response to the evolution of the energy sector.

Since creation of Quercus Real Assets Limited a decade ago, the strategies of the company have been founded on the belief that creation of the long-term environmental and social capital underpins and strengthens investors’ and shareholders’ returns. Quercus is committed to developing business opportunities and supporting responsible investments for sustainable income and capital returns while contributing to a carbon-neutral future.

BayWa r.e. selected as a strategic investor for one of the largest PV portfolios available in the Spanish market.

Luxembourg, 3rd February 2022. BayWa r.e. global renewable service provider, energy developer and distributor, has been selected through an international tender process as the strategic investor for the acquisition of a Spanish PV development portfolio sponsored by Quercus, a specialist investor in renewable energy.

The portfolio is comprised of 11 PV development projects in Spain with installed capacity of over 700 MW, representing one of the largest portfolios available in the Spanish market of late.

The transaction, signed at the beginning of January, involves BayWa r.e. acquiring the projects when those are delivered by Quercus at a ready-to-build stage. In Spain, BayWa r.e. has been present since 2010 where it already has a track record of 378 MWp of renewable energy capacity installed, 200 MWp expected to be commissioned by the first quarter of 2022, and a pipeline of over 1.5 GW planned for delivery by 2025.

Greenhill, a leading independent investment bank with a strong track record in the Spanish renewable energy market, has acted for Quercus as its exclusive financial advisor for marketing and execution of the transaction.

Diego Biasi, Director of Quercus in Luxembourg, said: “All parties involved in this complex deal have done an outstanding job and Quercus is proud to have achieved this collective result. The deal re-iterates the increasingly indispensable industrial component in the sector and we at Quercus are developing our business by further aligning ourselves in this regard”.

Rafael Esteban, Managing Director of BayWa r.e. Projects España S.L.U., commented: “We are delighted to have reached this agreement with Quercus for the acquisition of this pipeline. These projects add to our well-established pipeline of solar and wind projects in Spain. The agreement marks another important step in BayWa r.e.’s contribution and commitment to driving the green energy transition in the country”.

About Quercus:

Quercus is an investment company operating out of Luxembourg and dedicated to the development portfolio investment. Quercus is being supported by Quercus Real Assets Limited, an investment advisor specialising in energy transition investments.

Diego Biasi and Simone Borla had founded Quercus by establishing a Luxembourg-based fund which successfully completed over €1bn in gross investments since inception in five different successful strategies. In January 2020, Quercus’s Chairman, Diego Biasi, joined forces with Marco D’Arrò, founder of the Real Asset Group (a capital advisory firm having raised €3.6bn of gross investments since its inception) to develop and steer Quercus’s business in response to the evolution of the energy sector.

Since creation of Quercus Real Assets Limited a decade ago, our strategies have been founded on the belief that creation of the long-term environmental and social capital underpins and strengthens investors’ and shareholders’ returns. We are committed to developing business opportunities and supporting responsible investments for sustainable income and capital returns while contributing to a carbon-neutral future.

About BayWa r.e. AG  (BayWa r.e.):

At BayWa r.e. we r.e. think energy – how it is produced, stored and can be best used to enable the global renewable energy transition that is essential to the future of our planet.

We are a leading global developer, service supplier, distributor and solutions provider and have brought over 4 GW of energy online and manage over 10 GW of assets. We are also an Independent Power Producer with an expanding energy trading business.

BayWa r.e. works with businesses worldwide to provide tailored renewable solutions. Operating 100% carbon neutral, we are also committed to our own sustainability journey.

Every day, we are working hard to actively shape the future of energy in a diverse, equitable and inclusive workplace.

Our shareholders are BayWa AG, a €17.2 billion global business, and Energy Infrastructure Partners, a leader in energy infrastructure investment.

The fund manager starts an international tender to select a strategic investor for the construction of the assets.

London, 16 July 2021. Quercus Real Assets Limited (Quercus) has started an international tender managed by Greenhill, the leading independent investment bank focused on providing financial advice globally on significant mergers and acquisitions, who are very active in the energy and infrastructure sector. The process aims at selecting a strategic investor for the construction and operation of the 800 MW Spanish PV portfolio that Quercus has acquired and developed since 2020. The portfolio is currently one of the largest in the European renewables market.

Bidders are likely to be among the major industrial and financial investors in the sectors, who are often the most interested parties in large portfolios, particularly in the Spanish market, one of the most active solar markets in Europe.

Quercus, since inception, invested in the construction and operation of solar and wind infrastructures, successfully completing more than €1 billion in gross investments in five European countries in just one decade. Following the first ten year chapter, in 2019 the investment manager stirred its strategy to adjust to the eve revolving renewables market and undertook investment in the permitting process which would lead to the construction of new renewable energy assets. This new strategy lead to the decision to dispose of the portfolios, all generating positive performance and in aggregate a return for investors higher than 8% at the date of the sale. This not only demonstrated the ability of the manager to navigate through the challenges of the many regulatory changes in Europe but also confirmed its commitment to deliver a successful result to international
investors, who continue to welcome and support the new strategy.

Quercus completes its first transaction since the sale of its Luxembourg fund platform creating a seed portfolio in a key strategic market.

London, 18 March 2021. Quercus Real Assets Limited (Quercus), a London based specialist focusing on international investments within the Energy Transition, has advised a Luxembourg affiliate on accumulating a sizeable portfolio of PV development projects in Spain.

This portfolio, approaching a capacity of 800MW, has been built through a series of acquisitions. The first assets will be ready to build at the end of 3Q 2021 with energisation occurring approximately 12 months later. The milestone marks an important step towards an ambitious growth plan for the benefit of investors and the development of clean energy infrastructure in the region. Quercus is currently exploring strategic options for this portfolio, which represents one of its Southern European development initiatives.

Diego Biasi, the Chairman of Quercus, said:

“We are delighted with our progress in expanding our presence in Spain – a promising and growing market for investments that meets our strategic objectives. This transaction represents our first announcement since the exit of our €1bn fund platform and furthers our objective of placing long-term environmental and social capital through sustainable investments”.

About Quercus Real Assets:

Quercus Real Assets is an impact investment firm specialising in energy transition investments regulated by the Financial Conduct Authority in the UK.

Since creation in 2010, our strategies have been founded on the belief that the creation of long-term environmental and social capital underpins and strengthens investors’ and shareholders’ returns. We are committed to investing responsibly for sustainable income and capital returns while contributing to a carbon-neutral future.

Quercus’ founders, Diego Biasi and Simone Borla, also established a Luxembourg Fund which grew to be one of the top 10 largest European independent funds specialized in utility scale renewable energy investments. The Fund successfully completed over €1bn in gross investments since inception and in October 2019 was sold in the largest Pan-European renewables transaction of the year. For Quercus, the sale completed a 10-year Phase One of its European investment strategy.

In January 2020, Quercus’ Chairman, Diego Biasi, embarked on Phase Two by joining forces with Marco D’Arrò, founder of the Real Asset Group, a capital advisory firm having advised and arranged €3.6bn of gross investments since its inception in 2013 and became Quercus Real Assets.

With the acquisition of the Quercus funds, Green Arrow Capital has established itself among the top ten operators in Europe and the leading independent Asset Manager in Italy for Renewable Energy Infrastructure, with approximately 400 MW under management.

Milan, Luxembourg, 28 October 2019. Green Arrow Capital (GAC) and Quercus Investment Partners have signed an agreement for the sale of 100% of the management company Quercus Assets Selection Sàrl (QAS), to GAC, one of the principle independent Italian operators in the alternative investment landscape. QAS is among the leading European funds specialising in Renewable Energy Infrastructure.

The acquisition of Quercus Assets Selection allows GAC to establish itself among the top ten operators in Europe and the leading independent Asset Manager in Italy with approximately 400 MW of Renewable assets under management.

For Quercus Investment Partners, the sale completes Phase one of its European investment strategy, where it will return to invest in new subsidy free (or grid-parity) assets amongst other investment products. Since its inception, Quercus has raised and invested 5 funds dedicated to Renewable Energy active in Italy, UK, Spain, Romania and Bulgaria.  Its Luxembourg platform, Quercus Assets Selection, manages over 320 MW of installed capacity split between PV and wind through its 5 separate vehicles Quercus Renewable Energy (QRE), Quercus Renewable Energy II (QRE II), Quercus European Renewables (QER), Quercus Italian Wind Fund (QIWF) and Quercus Italian Solar Fund (QISF).

The platform includes a number of blue-chip Italian and international institutional investors including Pension Funds, Foundations and Insurance companies along with a successful joint venture with Swiss Life in the Italian PV market for large-scale infrastructure.

Green Arrow Capital continues its strategy of ambitious growth, which has allowed it to become a leader in the field of Alternative Investments, creating one of the most important independent platforms in the Italian and pan-European markets.

The dividend is in line with the forecasts for 2019, total NAV of more than 220 million

London/Milan, 17 June 2019. The investors’ meeting of the Quercus Assets Selection SICAV SIF fund, in Luxembourg, approved the financial statements of the SICAV and the distribution of half-year dividends for a total of EUR 7.1 million, broken down as follows: 0.3 million euro for the QRE fund equal to a yield of 2.5%, 1.5 million Euro for the QRE II fund equal to 2.1%, 2.9 million euro for the QER fund equal to 6.5% and 2.4 million euro for the QISF fund, equal to 2.8%.

The dividend on a half-year basis is in line with the forecast for 2019 and the NAVs of all the funds as at 31 December 2018 are up compared to 30 June 2018, reaching a total value of more than 220 million euros (Eur 222,429,213). The NAVs of the individual funds amounted to 12.072 million euros for the QRE fund, 71.622 million for QRE II, 44.44 million for QER, 87.145 million for QISF.

Quercus fund manages over 300 Mw of installed capacity, between solar and wind power, in five European countries with a total asset value of over 1.1 billion euros. Quercus has recently implemented measures that will allow to enhance the post-acquisition asset management apparatus to optimize its long-term performance.

The co-founder and CEO, Diego Biasi, comments: “We are satisfied because we are keeping the promises made to investors of a stable semi-annual distribution thanks to assets that are proving to be of high quality and thanks to a careful management that follows the best practice of market. The renewable energy market in Europe has become increasingly competitive and we are looking at new ideas both in Europe and beyond that will involve new investment strategies. Grid parity will surely be a necessary step in the near future, but let’s not forget that the world is turning more and more towards green mobility, a new niche that needs solutions and that we hope will bring new investment opportunities with it.”

About Quercus Assets Selection:
Founded in 2010 by Diego Biasi, the current CEO, and Simone Borla, Quercus Assets Selection is one of the leading European funds specialising in renewable energy. From its foundation through to the present, the fund has managed five different technology and investment policy strategies ranging from construction financing to M&A activities. Among other achievements, it has successfully executed a Joint Venture with the UK government in the English biomass sector, with Swiss Life in the Italian photovoltaic market for large-scale infrastructure.

About Quercus:
Quercus Investment Partners, based in London, is regulated by the FCA and provides advisory services to Quercus Assets Selection Sarl, general partner of the SICAV-SIF Quercus Assets Selection (“QAS”). QAS has the objective of creating a balanced portfolio of assets, diversified by both technology and geography, inflation protected and uncorrelated with traditional financial markets. It is regulated by the CSSF in Luxembourg and ultimately seeks to deliver long term stable cash flows over its investment horizon.

The approval was necessary for the legislation governing the activity of funds subject to Luxembourg supervision.

London/Milan, 28 May 2019. The Commission de Surveillance du Secteur Financier of Luxembourg has approved the appointments of Giuseppe Garofano, Giulio Antonello, Christopher Knowles and Shaun Kingsbury as new members of the Board of Directors of Quercus Assets Selection S.C.A., SICAV-SIF.

The company controls the five Quercus funds invested in photovoltaic and wind renewable energy plants in Italy and Europe and approval was necessary for the legislation governing the activity of fund managers subject to the supervision of the Luxembourg authority.

The Board of Directors is now composed as follows: Gregory Barker (Chairman), Diego Biasi (CEO), Christopher Knowles (Vice-Chairman), Giuseppe Garofano (Vice-Chairman), Shaun Kingsbury, Ettore Gotti Tedeschi, Reza Shaybani, Marco Claus and Giulio Antonello.

 

Diego Biasi, Co-Founder and CEO of Quercus, commented: “We awaited approval from the Authority according to the procedure. The new managers are of great depth and are added to a team already consolidated and with great experience in the renewable sector. With the new Board definitively in office, we are ready to implement our ambitious investment plan that will lead us to become one of the leaders at European level“.

About Quercus Assets Selection:
Founded in 2010 by Diego Biasi, the current CEO, and Simone Borla, Quercus Assets Selection is one of the leading European funds specialising in renewable energy. From its foundation through to the present, the fund has managed five different technology and investment policy strategies ranging from construction financing to M&A activities. Among other achievements, it has successfully executed a Joint Venture with the UK government in the English biomass sector, with Swiss Life in the Italian photovoltaic market for large-scale infrastructure.

About Quercus:
Quercus Investment Partners, based in London, is regulated by the FCA and provides advisory services to Quercus Assets Selection Sarl, general partner of the SICAV-SIF Quercus Assets Selection (“QAS”). QAS has the objective of creating a balanced portfolio of assets, diversified by both technology and geography, inflation protected and uncorrelated with traditional financial markets. It is regulated by the CSSF in Luxembourg and ultimately seeks to deliver long term stable cash flows over its investment horizon.

The project has a capacity of 39 MW and is the largest built in Italy in 2018

London/Milan, 25 March 2019. Quercus, a European fund manager specializing in renewable infrastructures investments, has completed the transaction with European Energy for the purchase of Bosco Le Piane wind farm in Basilicata. The deal has been signed in August 2018 and the completion follows the successful fulfilment of all the conditions precedent to closing, including the confirmation by the GSE of the subsidy.

The project is equipped with latest technology and tier one components and consists of 13 Siemens Gamesa wind turbines with a total capacity of 39 MW. It was also the largest wind farm built in Italy in 2018.

The wind farm benefits from a fixed price feed in tariff for 20 years, providing a predictable and stable distributions profile, in line with the Investment Strategy of Quercus.

The transaction, worth circa 80 million euros of Enterprise Value, will contribute to serving 13,000 families thanks to clean electricity deriving from the activity of the park.

Quercus would especially like to thank Orrick, Herrington & Sutcliffe LLP for their valuable support.

Lord Gregory Barker, Chairman of Quercus, commented: “We now have many active projects in Italy and more to be implemented in the coming months, as the country continues to be particularly interesting for investors in the European renewable energy sector.
We thank European Energy for this fruitful collaboration and we are certain there will be further opportunities to collaborate together in the future”.

Diego Biasi, Co-Founder and Managing Director of Quercus, commented: “Our asset portfolio is of the highest quality not only in Italy but also in Europe. The Bosco Le Piane wind farm allows us to increase the installed capacity of wind assets in our funds and profitability for our investors. We continue to focus on Italy and the main strategic European areas to consolidate our leadership position in the renewable energy market”.

 

About Quercus Assets Selection:

Founded in 2010 by Diego Biasi, the current CEO, and Simone Borla, Quercus Assets Selection is one of the leading European funds specialising in renewable energy. From its foundation through to the present, the fund has managed five different technology and investment policy strategies ranging from construction financing to M&A activities. Among other achievements, it has successfully executed a Joint Venture with the UK government in the English biomass sector, with Swiss Life in the Italian photovoltaic market for large-scale infrastructure.

About Quercus:
Quercus Investment Partners, based in London, is regulated by the FCA and provides advisory services to Quercus Assets Selection Sarl, general partner of the SICAV-SIF Quercus Assets Selection (“QAS”). QAS has the objective of creating a balanced portfolio of assets, diversified by both technology and geography, inflation protected and uncorrelated with traditional financial markets. It is regulated by the CSSF in Luxembourg and ultimately seeks to deliver long term stable cash flows over its investment horizon.

 

About European Energy:
European Energy constructs wind and solar farms as well as large-scale green energy storage and have constructed more than 1 GW of generating capacity.