Aurelia Turbines

Established: 2013
Climate Fund investment decision: 2021
Funding target: funding is aimed at financing working capital for turbines that have significant emissions reduction potential
Funding: EUR 5 million capital loan, which is priced on market-term interest based on the reference interest rate table published by the EU. The funding includes a convertibles option connected to a sustainability incentive whereby the Climate Fund has a right to convert a part or the entirety of the loan into a holding in Aurelia Turbines. According to the sustainability incentive, the more emissions reductions are reached compared to the anticipated base line, the more favourable the conversion is for Aurelia Turbines.
Main anticipated impact: the funding involves an estimated emissions reduction potential of around 1.5 Mt CO2e over ten years. The solution could in particular have a bigger role than its size at the front line of utilising hydrogen, speeding up development of the hydrogen infrastructure.

Hydrogen is predicted to have a significant role in emissions reduction and carbon neutral hydrogen in particular is an important solution in the transition to a low-carbon society. The hydrogen economy will be built on a value chain of hydrogen production, storage, transport and utilisation.

Aurelia Turbines makes more efficient gas turbines for industrial needs. The turbines can flexibly be fuelled with varying degrees of hydrogen. As industrial infrastructure is gradually updated along different tracks, Aurelia’s turbine delivers great value at the end of the hydrogen value chain, replacing fossil energy sources with hydrogen. Thanks to its flexibility, Aurelia’s solution has very good chances of being involved at an early stage in supporting the completion of the industrial infrastructure for a hydrogen future and gradually taking it in a more environmentally friendly direction.

The Climate Fund’s investment decisions are guided by a three-tiered set of criteria. The preconditions for funding are a credible plan for at least self-sustainable business, verifiable added value from the state’s contribution to the project’s overall funding, and alignment with the six environmental objectives of the EU’s sustainable investment network, i.e. the “do no significant harm” principle.  Other aspects in the investment decision include emission reductions and other impact, such as business potential.

Estimates indicate that the solution has very great cumulative emissions reduction potential of around 1.5 Mt CO2e over ten years. The solution could in particular have a bigger role than its size at the front line of utilising hydrogen, speeding up development of the hydrogen infrastructure.

Funding from the Climate Fund is involved in speeding up reaching emissions reductions and in contributing to supporting the development of a hydrogen cluster in Finland. The €5 million funding is aimed at funding working capital for turbines with significant emissions reduction potential.

The interest on the Climate Fund’s capital loan has been priced in accordance with the reference interest rates table published by the EU, i.e. the Climate Fund is entitled to interest on its capital loan on market-terms. In addition to this, a convertibles option has been negotiated into the funding agreement through a sustainability incentive, whereby the Climate Fund has the right to convert a part or the entirety of the loan into a holding in Aurelia Turbines Oy. Under the sustainability incentive, the more emissions reductions Aurelia’s turbines deliver based on a forecast basic level at the end of the loan term, the more favourable conversion is for Aurelia Turbines.

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