Advanced Power raises €31.5m from 3i and Directors to fund power generation projects

14 May 2007

3i and Advanced Power today announce that 3i, together with members of the board of Advanced Power, have agreed to invest €31.5m in Advanced Power AG, a Swiss-based development business focused on developing conventional power generation stations across Europe and North America. Advanced Power has a pipeline of 10 developments at different stages, all expected to receive planning permission within the next 5 years, and the most advanced within 9 months.

The demand for new power generation capacity is being driven by a number of factors, including increased global consumption and the replacement of ageing infrastructure.  Whilst renewable generation will fill part of the generation gap, conventional power generation (gas or coal fired) will play an important ongoing role.

Advanced Power’s management team, made up principally of former senior executives from InterGen, one of the most successful developers of independent power projects over the last decade, is led by CEO Dr. Martin Giesen and includes Mathew Brett, Managing Director, Tom Spang, President Advanced Power North America, Peter Ramm, Technical Director and Martin Bashall, General Counsel.  The strong executive team will be complemented by the addition of Ian Russell, former CEO of Scottish Power, who will join the board as Chairman and also by George Verberg, former CEO of Gasunie, joining the board as Non-Executive Director.  Advanced Power was advised on this transaction by RBC Capital Markets and Simmons & Simmons

Mark Kerr, Director, 3i Oil, Gas & Power, commented: “Advanced Power operates in an attractive and fast growing market characterised by increasing global demand for power and a rapidly ageing generation fleet.  We believe that the company has first mover advantage and is well placed to exploit this opportunity on the back of a very experienced management team and an attractive starting development portfolio. The investment further demonstrates 3i’s commitment to the gas and power sector.” 

Martin Giesen, CEO of Advanced Power, commented: “3i is the ideal partner for us as we look to take the next step in establishing ourselves as the leading independent developer of power generation projects in our target markets.  Besides capital, 3i has a strong track record of investing in our sector as well as an invaluable global network which mirrors the countries in which we operate, as demonstrated by the introduction of Ian Russell as Chairman.” 

Notes to editors

About 3i
3i is a world leader in private equity and venture capital.  3i focuses on buyouts, growth capital venture capital and infrastructure and invest across Europe, the United States and Asia.  Our competitive advantage comes from our international network and the strength and breadth of our relationships in business.  These underpin the value that we deliver to our portfolio and to our shareholders. 

About 3i Oil, Gas & Power
3i’s Oil, Gas & Power team manages an investment portfolio with a value of $1bn across the UK, Norway, USA and Singapore.  The current portfolio includes Delta Hydrocarbons, an E&P business; Electrawinds, the leading independent renewable energy company in Belgium; Dockwise, the Dutch heavy transportation company; EDP, an oilfield development project manager and Noreco, a Norwegian independent exploration and production company.  Successful realisations include Vetco Gray, which was sold to GE’s Oil & Gas division for US$1.9 billion in January 2007; Petrofac, the international oil and gas facilities service provider, which floated in October 2005; Revus Energy, the independent Norwegian upstream company, which floated in June 2005; and CH4 Energy, a leading exploration and production company, which was acquired by Venture Production plc in August 2006.

About Advanced Power
Incorporated in 2000 in Zug, Switzerland, Advanced Power provides the comprehensive expertise required for developing large scale power generation projects and related infrastructure facilities. Advanced Power’s management has been responsible for developing and financing over 9,000MW of power generation projects and raising USD 4 billion of limited recourse project financing. Advanced Power has four projects in active development (the 400MW T-Power CCGT project in Tessenderlo, Belgium; the 400MW CCGT project in Bocholt, Germany; the 1,100MW Merida Power CCGT project in Spain; the 350MW Brockton CCGT project in Massachusetts, USA) and is pursuing further opportunities in Germany, Slovakia, Hungary, the Netherlands and North America. Advanced Power has a strategic relationship with Siemens Project Ventures GmbH, a group company of Siemens Financial Services.

For further information please contact:

Kathryn van der Kroft
email. kathryn.vanderkroft@3i.com
tel.  +44 207 975 3021