Green financial engineering for geo-energy developed by Celsius Energy

Scientific project

Celsius Energy, a Schlumberger Group company, has developed a technology to produce heat and cooling in buildings from geo-energy. This technology significantly reduces energy consumption in buildings and GHG emissions into the atmosphere. These characteristics make this technology more cost-effective in the medium and long term compared to more traditional heating options (such as natural gas). The company has already set up a Proof of Concept (POC) of this solution at their site in Clamart and is moving forward on several pilots in parallel. Celsius Energy is looking to leverage and monetise the benefits of this technology (such as GHG reduction) and define a strategy for the scale-up of the project. The product targets several types of customers with different constraints and decision criteria for which it would be relevant to adapt the financing proposal to convince the largest number. 

Some financial constraints have already been identified that make the adoption of the product more complex to date: 

• A significant CAPEX amount for the end-customer, yet still too small to enter the radar of project finance teams
• A lack of carbon footprint reduction valuation for those who would use the product

Project objective: The main objective will be to propose financial engineering mechanisms allowing Celsius Energy to propose financing solutions adapted to the needs, constraints and choice criteria of its clients. These solutions may aim – but not exclusively – to reduce the CAPEX to be provided, to reduce the cash flow cost, to enhance the green value of the project, to build partnerships facilitating the search for financing for the client… 

Numerous avenues have been identified and can be analysed. Non-exhaustive: 

• Partnership with a global bank and/or regional banks
• Financing via green bonds
• Financing via green securitisation
• Partnership with the Caisse des Dépôts
• Financing of cash flow through public aid

The scientific approach must therefore combine financial, regulatory and real estate expertise.