LCM Partners SOLO VII SLP ESG Report August 2024 Final

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Crew Transfer Vessels

(Portfolio 11)

Portfolio 11 primarily provides financing to the

owners and operators of Crew Transfer Vessels

(“CTVs”) with the vessels focused on servicing

offshore wind parks.

Portfolio 11 is an example of SOLO building

relevance in the renewables space by funding

more granular assets and service equipment

rather than the large ticket infrastructure assets

themselves.

Overview

By providing finance for the funding of Crew Transfer Vessels the facility

enhances the reduction of fossil fuel use as these assets are a pre-requisite for

both the construction and maintenance of Offshore Windfarms and their

production of renewable energy.

As Europe decarbonises its electricity generation capacity, offshore wind plays a

vital role in this process. The UK leads the way and is one of the largest offshore

wind electricity producers and continues to dedicate resources to grow generation

capacity through this form of generation.

CTVs play a critical role in both the construction and maintenance of offshore

windfarms and as such are critical assets in the industry. During the construc-

tion of a new offshore wind farm, the owner will most likely need about one CTV

for every five new turbines. During the operation and maintenance phase, one

vessel is required for every 10-15 turbines. Effective covenants ensure CTVs are

being used exclusively for offshore renewables during the life of the investment

(typically 5 year contracts).

Generating power via wind power produces less CO2e than

alternative energy sources

Source: https://www.forbes.com/sites/christopherhelman/2021/04/28/how-green-is-wind-

power-really-a-new-report-tallies-up-the-carbon-cost-of-renewables. Statistics referenced in the

article are compiled from the following sources: National Renewable Energy Laboratory, Vestas,

Siemens Gamesa Renewable Energy and Bernstein Research estimates. Carbon dioxide

equivalent (CO2e) is the number of metrics tonnes of CO2 emissions with the same global

warming potential as one metric tonne of another greenhouse gas. This is a standard metric

for CO2 footprints.

99%

Lower

Emissions

Than

Coal Power

21%

Lower

Emissions

Than

Solar Power

98%

Lower

Emissions

Than

Natural Gas

Power

KPIs

1. Cwind: Total number of CTVs funded: 4

CTV Name: CWind Pioneer

Type of CTV

Hybrid

Vessel activities

Windfarm maintenance

Clean energy generated (kWh)

390,000

Reduction in CO2 emissions versus solar power (kWh)

12,870,000 g/ CO2e

Reduction in CO2 emissions versus natural gas (kWh)

171,217,800 g/CO2e

Reduction in CO2 emissions versus coal power (kWh)

385,710,000 g/CO2e

CTV utilisation during the period

83%

Adherence to LCM’s Exclusion Policy

Yes

CTV Name: BF Hurricane

Type of CTV

Diesel

Vessel activities

Other – search

and rescue

CTV utilisation during the period

100%

Adherence to LCM’s Exclusion Policy

Yes

CTV Name: CWind Tornado

Type of CTV

Diesel

Vessel activities

Windfarm maintenance

Clean energy generated (kWh)

390,000

Reduction in CO2 emissions versus solar power(kWh)

12,870,000 g/CO2e

Reduction in CO2 emissions versus natural gas (kWh)

171,217,800 g/CO2e

Reduction in CO2 emissions versus coal power (kWh)

385,710,000 g/CO2e

CTV utilisation during the period

83%

Adherence to LCM’s Exclusion Policy

Yes

CTV Name: CWind Typhoon

Type of CTV

Diesel

Vessel activities

Other – search

and rescue

CTV utilisation during the period

100%

Adherence to LCM’s Exclusion Policy

Yes

2. Diverse Marine: Total number of CTVs funded: 2

CTV Name: Stockbuild 1

Type of CTV

Diesel

Status of the CTV

Under construction

Adherence to LCM’s Exclusion Policy

Yes

CTV Name: Stockbuild 2

Type of CTV

Diesel

Status of the CTV

Under construction

Adherence to LCM’s Exclusion Policy

Yes

3. HST: Total number of CTVs funded: 1

CTV Name: HST Millie

Type of CTV

Hybrid

Vessel activities

Windfarm construction

Clean energy generated (kWh)

1,197,936,000

Reduction in CO2 emissions versus solar power (kWh)

39,531,888,000 g/CO2e

Reduction in CO2 emissions versus natural gas (kWh)

525,917,862,720 g/CO2e

Reduction in CO2 emissions versus coal power (kWh)

1,184,758,704,000 g/CO2e

CTV utilisation during the period

100%

Adherence to LCM’s Exclusion Policy

Yes

4. NR Marine: Total number of CTVs funded: 1

CTV Name: NR Predator

Type of CTV

Diesel

Status of the CTV

Under Construction

Adherence to LCM’s Exclusion Policy

Yes

Under Portfolio 11, we are also providing funding to Coastal Workboats to

allow them to build and deliver a new electric powered ferry which will be used

by local residents off the remote Shetland Islands in Scotland.

5. Coastal Workboats: Total number of workboats funded: 1

Type of ferry funded

Electric

Status of the ferry

Under construction

Adherence to LCM’s Exclusion Policy

Yes

Key Performance Indicators (KPIs)

During the reporting period, the partnership deployed £13.6m into Crew Transfer Vessels to support with both the construction and maintenance of offshore

windfarms across Europe. In total, 8 crew transfer vessels received financing and five of these were operationally active during the period with further details included

in the table below.

LCM Partners SOLO VII SLP | ESG Report | 09

UN SDG Alignment:

LCM has assessed Portfolio 11 for alignment with the UN SDGs. This investment

is aligned with the following:

SDG 7: Affordable and Clean Energy

7.2: Increase substantially the share of renewable energy in the

global energy mix

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