Longspur Capital’s Post

Did you know that clean energy stocks have tumbled 28% in 12 months, according to the S&P Global Clean Energy Index, which tracks 100 companies including wind turbine and solar panel manufacturers?   Our Head of Research, Adam Forsyth, spoke to Rachel Millard at the Financial Times on what we need to revitalise this market: “We need #investment in terms of primary investment and project investment — and it would be helpful if there is a stronger secondary market.”   Read more here: https://lnkd.in/e5XgziqW   #cleanenergy #energytransition #financialtimes

📢 Longspur Capital is delighted to have advised SFP Group as sole financial adviser on its €120 million capital raise for the construction of two large 20MW biomethane plants in the Netherlands. Senior debt will be provided by ABN AMRO Bank N.V. and ING Bank, with a junior tranche from Zencap Asset Management. Equity will be provided by SFP Group and SWEN Capital Partners. SFP Group will now have capacity to produce ~800 GWh of biomethane annually. Enough to supply more than 50,000 households with green gas each year for decades! Learn more about the deal in the Financieele Dagblad: https://lnkd.in/eK-TjD2C Bas Verloop, Managing Director and Head of Debt Advisory at Longspur Capital added: “Congratulations to the SFP Group team and to everyone involved. We are looking forward to SFP’s future success. We are proud to be very active with multiple clients in the booming biomethane sector.” #energytransition #netzero #biomethane #deal #energyinfrastructure

🔋 How much is a battery energy storage (BESS) project worth, even if it's not operational yet? With more developers (both listed and private) emerging to deal with the critical shortage in grid-scale energy storage capacity, its no surprise that there is much more BESS capacity in development than there is currently operational. We think the ability to independently value assets at both stages should be a key part of any clean energy investor's toolkit. Last week we updated our investment thesis on SIMEC Atlantis who have just shy of 1GW in consented grid capacity at various stages of development. Our analysts used the report to help investors assess how much value sits within the business, even though its not all operational. Longspur Capital Clean Energy Research is available to all professional investors. We have an extensive track record covering large and small companies on the main UK list, on AIM, NASDAQ, ASX and on a number of European exchanges. If you'd like to know more about SIMEC, or our other research in the BESS sector, feel free to reach out to Adam Forsyth (Research), Max Campbell (Research), or Adam Robertson, CFA (ECM).

💡 Did you know, less than 1/5th of UK households have adopted LED lighting? And 77% of the UK office stock is expected to be unlettable by 2030 due to insufficient EPC ratings? We recently initiated research coverage on Luceco Group – a leader in electrical infrastructure and LED lighting in the UK. Electrification of the home, workplace, and broader infrastructure is a secular growth trend that we think will underpin Luceco's growth in the long-term. With RMI now expected to tick up in 2025 as inflation and interest rates moderate, we expect spending to improve translating into increased earnings growth. We think earnings are likely to be supplemented by self-funded acquisitions, keeping with the company's impressive history of accretive M&A, driving further upgrades.   Longspur Capital Research is available to all professional investors. We have an extensive track record covering large and small companies on the main UK list, on AIM, NASDAQ, ASX and on a number of European exchanges. If you'd like to know more, please feel free to reach out to Adam Robertson, CFA (ECM), Max Campbell (Research), or Adam Forsyth (Research). #energytransition #energyefficiency #LEDtherebelight

🔌 Did you know it can take more than a decade to get a renewable energy project connected to the grid? And that the cost of a grid connection typically exceeds £100,000 per megawatt (MW)? This morning we updated our investment thesis on SIMEC Atlantis Energy who have almost 1GW (1000MW) in grid connections across the UK. Following the sale of a project to Quinbrook, SIMEC Atlantis has emerged from a period of cash uncertainty. It now sits well funded with considerable embedded value in its existing grid connections and future development opportunities which we don't see reflected in today's share price. The purpose of today's 22-page deep dive is to identify and explain the value hidden within the company, its existing grid connections, and the potential for value creation in future as it looks to develop its own energy storage projects ideally positioned to benefit from an electricity market that is becoming structural more volatile. Longspur Capital Research is available to all professional investors. We have an extensive track record covering large and small companies on the main UK list, on AIM, NASDAQ, ASX and on a number of European exchanges.    Get in touch with our team Adam Forsyth (Research), Max Campbell (Research), or Adam Robertson, CFA (ECM) to learn more.   #energytransition #batterystorage #BESS

💡 This morning we initiate research coverage on Luceco Group. As a manufacturer and distributor of electrical accessories and LED lighting products, Luceco is positioned to benefit the transition to net zero. We see this as a growth engine for the company moving forwards which should translate into faster earnings growth, reduced cyclicality and a higher rating than currently appreciated by the market. Management is actively pursuing M&A opportunities and has a successful track record of undertaking accretive acquisitions. We see this continuing, with additional acquisitions presenting upside to our base case scenario and as potential catalysts for the shares. Longspur Capital Research is available to all professional investors. We have an extensive track record covering large and small companies on the main UK list, on AIM, NASDAQ, ASX and on a number of European exchanges. Get in touch with our team Adam Forsyth, Max Campbell, or Adam Robertson, CFA to learn more. #energytransition #energyefficiency #lighting

Our latest sector research explores the booming biogas sector. It aims to explain why investment increased significantly and uncover where opportunities exist for investors interested in this space. Our analysis suggests that 2024 is expected to see continued high investment, driven by: 1.      material improvements in supportive policies around the world 2.      ambitious production targets to unlock biogas and its derivatives’ decarbonisation value If you have are interested in understanding the intricacies driving growth in the biogas sector, get in touch with Adam Forsyth (Head of Research), Max Campbell (Research Analyst) or Adam Robertson, CFA (Head of Distribution). #biogas #biomethane #ukenergy #energytransition 

🎯 We've just published our latest in a series of research reports on the UK Government's Review of Electricity Market Arrangements (REMA). This time we're "Zoning in on Zonal Pricing". ⚡ Zonal Pricing aims to change the way electricity is priced across the UK in a way that will incentivise new sources of generation to be built near where energy is in highest demand. This should reduce the cost of services like System Balancing which added over £2.8bn to consumer energy bills last year. We cover lots of topics in this report: ✅ What is Zonal Pricing? ✅ Why is it being considered? ✅ When might it be implemented? ✅ How might it impact wholesale and regional energy prices? ✅ Who are the winners and losers from a shift to Zonal Pricing? If you have interest or exposure to the UK energy market, and want to get up the curve on the potential impacts of Zonal Pricing, please do get in touch with Adam Forsyth (Head of Research) or Adam Robertson, CFA (Head of Distribution). Alternatively you can email us on [email protected]. #rema #zonalpricing #ukenergy #energytransition