Kazakhstan’s AIFC Green Finance Center LTD and CREON Capital S.a.r.l. signed a memorandum of understanding and partnership to strengthen cooperation in the field of carbon capture, storage and utilization (CCUS).
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In June, Creon Capital established a branch in Düsseldorf. The new Creon mainstay is located directly on the Rhine. Its team is to bundle the investment activities in Germany. For this purpose, Creon Capital has boarded four new leading employees with extensive know-how and a widespread network in the European industries. The mission of the Düsseldorf team is to develop M&A as well as investment projects in Germany and to internationalize them on the Eurasian level.
Josef Rentmeister, the new Co-Chairman of Creon Capital, gained over 20 years of leadership experience at IBM, Cisco, and T-Systems with responsibility for over €1 billion budget and over 2,000 employees. Through his investments in German small and medium-sized enterprises (SME), he brings 15 years of experience in investment management and business development.
“I am thrilled to join the Creon team, combining the outstanding expertise and network of Creon with my global experiences. Together with my team I am looking forward to contribute to bridge the gap between western businesses and eastern suppliers and investors”, said Josef Rentmeister.
Jan Wuppermann, Director, has more than 20 years of experience in corporate finance, restructuring and auditing, amongst others as Head of Internal Audit North- and Latin America of a stock-listed packaging corporation and in the establishment of a bank’s M&A department. Jan Wuppermann completed his vocational training in banking and has a master’s degree in International Business from Maastricht University and a Master of Laws (LL.M.) from the University of Münster. Jan Wuppermann is a founder and Managing Partner of Operando Partners, where he is responsible for marketing/communications, investors, and the origination of transactions. He is also a shareholder of Wuppermann AG, a family-owned metal processing business founded in 1872, which has an annual revenue of around 500 million euros.
Peter Folle, Director Transactions, who gained over 20 years of experience as a PE fund manager. As a trained banker and holding degrees in business administration and economics, he has developed the fund and investment controlling of Triginta Capital since 2001 and is Managing Partner since 2003, responsible for more than 100 transactions. Besides that, he has extensive experience in the areas of investment controlling and restructuring SME, specialized on mechanical engineering, internet, IT as well as health and social services.
Jan Philip Neuhaus, Director, holds a Bachelor and Master of Science in Business Administration with a major in Accounting and Finance. His main focus is the execution and support of M&A transactions in all phases. In addition, he supported the investment process for the company’s own portfolio with regard to investments in start-ups and SMEs.
JSW Steel Italy announced the signing of an agreement with Creon Capital with the aim of developing the renewable energy, LNG, logistics and related industrial activities in the area of Piombino port. On September 15th, JSW Steel presented the Piombino 2030 Industrial Plan.
The new industrial plan for JSW Steel Group’s Italian companies, known as Piombino 2030, was presented on September, 15th at the JSW Steel Italy headquarters in Piombino. JSW Steel Italy’s Vice-President, Marco Carrai, the Undersecretary for Economic Development, Alessia Morani, the President of the Tuscany Region, Enrico Rossi, and the Mayor of Piombino, Francesco Ferrari, were present at the event.
Other participants were the Social Partners, representatives of the Province, of the Ministry of the Environment, of the Ministry of Labour, Invitalia, the Upper Tyrrhenian Sea Port System Authorities and the State Property Office. The meeting was also attended by all the financial partners involved in the industrial plan.
The industrial plan, which envisages an initial investment of 84 million euro thanks also to the participation of Invitalia, as announced in the same office by the Undersecretary for Economic Development Alessia Morani, is divided into two phases: the first, in the short term, aims to make the rolling plants more efficient, complete the product range and bring the company to satisfactory profitability. The second phase, in the medium term, targets over the next five years the return to steel production through the use of the electric furnace and the construction of a multicentric industrial complex that also includes logistics, manufacturing and environment activities to be carried out with selected partners in the individual sectors and financials.
“We are proud to present the business plan today, even in a difficult economic situation. I would like to thank all those present here for making this relaunch a reality” – said Marco Carrai, Executive Vice President JSW Steel Italy – “Invitalia, as announced today by the Undersecretary for Economic Development Alessia Morani, will support this first phase, aiming to relaunch the company and make it productive again. We hope that Piombino will once again become a key industrial place, starting from our core business, steel, and safeguarding all jobs”.
“We had made a commitment and respected it. For some months now I have been following the dispute with Minister Patuanelli. The first commitment we had made was the possibility for the State to enter the capital of JSW Piombino and this will be achieved in the coming weeks through Invitalia, which will enter with 30 million euros” – said the Undersecretary for Economic Development Alessia Morani – “The second commitment was on a regulatory level and took shape last week, with the approval of the simplification decree, regarding the rail orders for the Piombino factory, thanks to which we created the ideal conditions ensuring a continuity that guarantees economic peace of mind for the company and, of course, for the workers. I believe that the policy must be done in the following way: for commitments and concrete results. On the 24th there will be a meeting at Mise to update the addendum that necessarily follows the approval of the industrial plan. With Jindal, all the institutional partners and with the help of the trade union, we hope to guarantee a future for this factory, which is the heart of the city, as soon as possible”.
In recent weeks, JSW Steel Italy announced the signing of an agreement with Creon Capital with the aim of developing the renewable energy, LNG, logistics and related industrial activities in the area of Piombino port and the start of a dialogue with the ship builder Fincantieri to assess the possibility of allocating some areas within the Piombino industrial site to shipbuilding activities and large reinforced concrete cellular modules for maritime infrastructure.
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JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. e G.S.I. Lucchini S.p.a. are part of the diversified JSW Group in India, which has a leading presence in sectors such as steel, energy, infrastructure, cement, sports, among others. Today, JSW Steel Ltd. is one of the leading integrated steel companies in India with an installed capacity of 18 MTPA.
Piombino (Italy), 1st September 2020 – Creon Capital has signed a Memorandum of Understanding (MoU) with JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. aiming for the development of a sustainable energy industry in Italy.
Together with local partners, the fund management proposed to start working on an investment plan that should upscale the Tuscan region of Piombino into a cluster for hydrogen, renewable energy, LNG, and logistics. Accordingly, the MoU has been signed by Dr. Fares Kilzie as Chairman of the Board of Directors (Creon Capital) and Marco Carrai, Executive Vice President of JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a.
Subject of the development plan will be the area in the municipality of Piombino, located on Tuscan Coast, 90 kilometers south of Livorno. JSW Steel Italy Piombino s.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. are companies belonging to the JSW Group, are the concessioner of a part of the area and have an option on another part of it, which is undergoing an industrial conversion.
Creon Capital team will be in charge for ESG integration, fundraising, and strategic development. As the Luxembourg-regulated Creon Energy Fund follows a distinctive sustainable investment approach, the management will evaluate initial quality, ongoing integration, and overall performance of environment, social and governance (ESG) factors in all related projects.
Dr. Fares Kilzie, Chairman of Creon Capital Board of Directors, underlines: “Due to its geographical location and excellent infrastructure, we estimate great potential for the industrial zone Piombino to become an innovative cluster for contemporary energy projects in Italy. Thanks to our strong footprint in the global energy sector, we are capable to attract investors as well as technology partners into the establishment of an energy cluster, that might consist of hydrogen, renewable energy, LNG storage and regasification projects.”
Marco Carrai, Executive Vice President of JSW Steel Italy Piombino S.P.A., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. underlined: “Our long relationship with Creon capital gives me the full confidence in conducting all our plans for Piombino in the midterm and long-term future.”
The Presidency of Tuscany Region, underlines: “cost of energy is a key issue for a full restart of a new steel plant in Piombino. We welcome this MOU as it demonstrates that public efforts put in the area made it attractive for new potential investments on top to the engagements from JSW Steel Group.”
Additional information
JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. are part of the diversified US$ 12 billion JSW Group in India, which has a leading presence in sectors such as steel, energy, infrastructure, cement, sports among others. Today, JSW Steel Ltd. is one of the leading integrated steel companies in India with an installed capacity of 18 MTPA.
Since 2008, the UAE-based renewable energy company Masdar hosts the Abu-Dhabi Sustainability Week (ADSW) to promote green technologies and renewable energy as cornerstones for a cleaner global energy sector. This year, CREON Group is committed as a sponsor of the World Future Energy Forum. A large delegation of specialists participates in the exhibition and forum discussion. More than 5.000 visitors visited the several sectoral summit and the exhibitions.
It is common knowledge that Arab countries such as the United Arab Emirates have achieved economic prosperity thanks to traditional energy sources. But some might still underestimate, that especially the UAE accelerated to the world leaders in terms of investments in new energy sectors. Their state policy in the field of renewable energy is based on the principles of sustainable development formulated by the UN and regionally ensured by active government support of investments in the new energy sector such as renewable energy and green technologies. During the Abu-Dhabi Energy Week, the Minister of Energy of Saudi Arabia, Prince Abdulaziz Ibn Salman Al Saud, predicted that the share of gas and renewable sources in the energy balance of the kingdom will increased significantly. Among renewable energy sources – not only solar and wind, but also hydroelectric power plants.
Sultan Ahmed Al-Jaber, UAE Minister of State and Chairman of Masdar, announced the goals of sustainable development of the emirates for the next 30 years: “At the national level in the UAE, we have increased our portfolio of renewable energy sources by more than 400% in the last 10 years, and we are on the path to doubling it again over the next 10 years. ” By 2030, the country plans to reduce greenhouse gas emissions by 25% and reduce the share of water use from natural sources to 0.5%. The Masdar Chairman stated that «the UAE not only talks the talk but walks the walk towards renewable energy. Because it is right and makes perfect economic sense».
It is no coincidence that the headquarters of the International Renewable Energy Agency (IRENA) is located in the UAE capital. The eco-city of the future Masdar City was built here, and since 2006 the company of the same name Masdar has been operating, through which the Abu Dhabi sovereign fund invests in green projects in 25 countries of the world. Khaldun Khalifa Al Mubarak, CEO of Mubadala Development Company, considers his main task “to act now, given the climate changes that threaten not only future generations, but the very existence of our planet.”
Green technologies and environmentally friendly energy solutions are in line with the investment objectives of the fund managed by Creon Capital, which is regionally oriented towards the emerging markets of Eurasia. The fund is constantly looking for new opportunities for clean energy. Fares Kilzie, Chairman of the Board of Directors of Creon Capital, explains why such solutions for the energy sector will be most in demand: “In parallel to traditional types of energy, Russia and the CIS countries are beginning to show interest in renewable energy and environmental solutions. The result is green projects worth trillions of dollars. As the country diversifies toward clean energy, it will also continue to invest in the responsible production of traditional forms of energy. We urge the majors of the Russian oil and gas sector, who have extensive capabilities and all the necessary infrastructure, to engage more actively in the implementation of green technologies and renewable energy sources. ”
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The Sultanate of Oman is one of the most stable countries in the Middle East. Since the country’s political opening in 1971, the government has maintained constructive relations with all its neighbors, and Oman plays an active role in the Gulf Cooperation Council (GCC). Thanks to the abundance of oil and gas, economic output has tripled since the turn of the millennium, though, with the collapse of the oil price the growth to slow down two years ago.
Today, Oman is open to international cooperation, as evidenced by exploration projects with partners such as Shell and Total in the oil sector. In gas processing, the sultanate plans to increase gas liquefaction capacity to meet growing global demand for liquefied natural gas (LNG). The Creon Energy Fund is ready to participate in such projects as an equity partner. That is why a delegation of Creon Capital headed by Chairman Dr. Fares Kilzie on October 28 and 29 visited Oman’s capital Muscat.
The focus of the fund’s delegation trip was a visit to the “Gas & LNG Middle East Summit” hosted by Wisdom Events. The high-caliber participants included, among others, the Minister of Oil and Gas, Dr. Ing. Mohammed bin Hamad Al Rumhy and Harib Al-Kitani, CEO of Oman LNG. Both underpinned their commitment to gas processing projects, which should help to strengthen and diversify the country’s economic growth sustainably. Creon Capital Chairman Fares Kilzie expressed in a panel discussion that the Luxembourg Creon Energy Fund will contribute to the necessary investment in LNG infrastructure.
On contrary to the oil sector the gas processing industries need equity partners, when it comes to the realization of new projects, Kilzie emphasized: “The global hydrocarbon market is changing. Chinese companies, for instance, approach us on monthly basis to ask for solutions how to import more LNG. To serve these demands, we need to invest not only in large-scale but also in small- and mid-scale LNG plants.”
These smaller tonnages with a capacity of usually less than 1.5 million metric tons per annum, are dedicated to decentralized heating plants, truck fueling stations and so-called bunkering operations, the refueling of ships with LNG. If the transport and logistics sector operate to a large extend on LNG-basis instead of Diesel and heavy oil, emissions could be reduced tremendously. In this context Dr. Kilzie argued: “We consider gas as the greenest available energy source for the transport sector.”
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For further information please contact: Leila Nettaf, T. +352 26 49 79 2203 (nettaf@creoncapital.lu)
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