DNV Assists Actis in Inaugural Acquisition of Japan-Focused Renewables Fund with Due Diligence Expertise

DNV Assists Actis in Inaugural Acquisition of Japan-Focused Renewables Fund with Due Diligence Expertise

(IN BRIEF) DNV, a global independent energy expert and assurance provider, has provided due diligence services to Actis GP LLP, a sustainable infrastructure investor, for their inaugural acquisition of a new Japan-focused renewables infrastructure fund. Actis acquired HERGO Japan Energy’s renewables portfolio as the first investment and seed asset for Nozomi Energy, a USD 500 million Japan-focused renewables investment platform. DNV’s due diligence aimed to identify technical and commercial risks that may impact power generation projects’ expected revenue over their operational lifetime. DNV’s cross-regional project team collaborated with Actis to assess technical risks, provide recommendations for risk mitigation, and conducted independent energy production assessments for two HERGO Japan onshore wind farms.

(PRESS RELEASE) BÆRUM, 28-Jul-2023 — /EuropaWire/ — DNV, the global independent energy expert and assurance provider, has advised Actis GP LLP, a leading global sustainable infrastructure investor, on the inaugural acquisition of their new Japan-focused renewables infrastructure fund.

Actis has since acquired HERGO Japan Energy’s wider renewables portfolio as the acquirer’s first investment and seed asset for Nozomi Energy, a new USD 500 million Japan-focused renewables investment platform launched in May 2023 by Actis.

The focus of DNV’s due diligence approach for Actis was to identify possible technical and related commercial risks that may result in a power generation project being unable to return the expected revenue over its operational lifetime.

DNV’s cross-regional project team worked closely with Actis on qualitative and quantitative assessments of the technical risk. DNV assessed the impact of any issues identified from the site visit and project documents and provided recommendations to Actis to mitigate the associated risks. DNV also provided an independent energy production assessment for the two HERGO Japan onshore wind farms based on measurement data from on-site meteorological mast and vertical LiDARs.

”Actis has a strong, long standing relationship with DNV and has deep respect for the diligent, fact based approach taken to Energy Yield Assessments. It was very positive to have access to that capability, combined with deep local insight, as we enter a relatively new market for Actis,” said Liam Smith, Director, Energy Operations, Actis.

Assessing wind resources

DNV applied its worldwide reference methodology to determine the energy potential of the sites for Actis to base its investment decision and identify associated technical risks. The approach is tailored to each site as projects are dependent on the type of wind data available for analysis, and on the required accuracy – high, standard, or low uncertainty – of the assessment.

The accuracy required shaped the choice of analytical tools and approaches for wind data gathering, long-term assessment, vertical extrapolation, flow modelling, and assessing aerodynamic interactions and energy loss factors.

“We were delighted to be asked to provide due diligence to Actis before the launch of its ambitious Nozomi Energy plans that can help Japan capitalize on the country’s huge potential to use onshore and offshore wind power to supports its energy transition,” said Brice Le Gallo, Vice President and Regional Director APAC, Energy Systems at DNV. “The work for Actis is another example of how our energy experts in Japan and worldwide can collaborate to share our longstanding and wide experience to assist the further development of renewable energy projects in Japan.”

“It was our great pleasure to support Actis in this strategic investment with our technical due diligence services. We were proud to complete the assessments in a very challenging time frame while ensuring DNV’s quality standard for the services. We are eager to support Japan’s achievement of the net zero emission target by 2050 through our involvement in more transactions like this,” added Yukinobu Uchida, Market Area Manager Renewables, Japan, Energy Systems at DNV.

About DNV

DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.

Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.

Driven by its purpose, to safeguard life, property, and the environment, DNV helps its customers seize opportunities and tackle the risks arising from global transformations. DNV is a trusted voice for many of the world’s most successful and forward-thinking companies.

In the energy industry

DNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services. As the world’s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.

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SOURCE: DNV AS