Our approach is based on a One-Stop-Shop model to bring together energy and industrial infrastructure to deliver a project
by a single organisation structure providing finance, feasibility studies and design, construction, operation and management.
Large integrated projects require significant commitments of capital over long periods. IM Power works closely with banks and investment funds in the international capital markets to fund the total capital cost of the projects with a mix of equity and debt.
Long-term debt can be structured depending on the requirements of the project with interest rates and repayments adjusted to reflect both construction times and future cash flow generation.
IM Power also arranges the insurance for the construction and operational phases of the project are in accordance with local legal requirements and reinsurance on the Lloyds Insurance Market in London.
To define a project in the first instance, IM Power provides an initial concept report to assess the requirement and provide a possible solution. Once this is agreed the report will be enlarged as a brief for a detailed feasibility study to evaluate the power project’s viability, the risks in construction and operation and the financial implications.
The detailed feasibility study is used as the basis of the funding plan and engineering design which will lead to contracts with the EPC contractors and nominated sub-contractors.
IM Power arranges contracts for the supply of fuel for power plants on a long-term basis. The price of oil and LNG can be fixed in cycles of 5 years with a reference point quoted on the ICM market in London. The market is screen based so the information is available at any time.
In some cases, the cost of fuel will include leasing charges for the FSRU which will receive the fuel. For larger plants the replenishment rate for the FSRU will be one shipment every two weeks whilst for the smaller plants it can be one shipment per month.
IM Power’s project management team is responsible for the design, planning and overseeing the project from initial concept to implementation. The management team will manage the project delivery, quality & cost against international benchmarks together with the project budget and payment approvals.
Once the plant is completed, it must be operated and managed to maximise the revenue whilst ensuring a long-term and reliable output.
To do this IM Power will issue subcontracts to manage the plant within agreed parameters to the specialist divisions of the turbine manufactures or the O&M department of national power companies. This ensures that both proper management of the plant and training programmes are put in place.
The profitability of a power plant depends on the quality of the power contract
known as the power purchase agreement (PPA).
These PPAs are usually in an international standard format but have to be considered on a case by case basis.
IM Power provides long-term PPAs that support Contract for Difference (CfD) payments and other government subsidy schemes, such as the Feed in Tariff (FiT).