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Climate Asset Risk Tool
Case studies, research, and perspectives on clean energy due diligence, risk assessment, and the future of energy finance.
01
Landfill Gas Acquisition: Improving RFP Bandwidth
An acquirer of landfill gas projects regularly received too many requests for proposal to thoroughly analyze.
The acquirer had to give an indicative bid first before reviewing the dataroom and giving a specific bid. With dozens of projects in the pipeline, bandwidth constraints made optimizing for the best projects difficult.
Using CEARTscore, the team was able to identify risks outside of the sales presentation, such as counterparty or revenue risks, leading to fast nos in some cases, and deliberate prioritization of others.
As a result, CEARTscore is saving an average of $200,000 in due diligence per project, streamlining preparation for investment committee, and leading to better investment decisions.
02
Biomass Developer: Enhancing Acquisition Decision-Making
A biomass developer was considering three potential plant acquisitions but had limited bandwidth to assess them.
After running the deals through CEARTscore, the developer found that one deal was facing local opposition from multiple ends and the second deal had material risks to feedstock and power purchase agreements. They were discarded as options with minimum bandwidth requirements.
The third deal also had seemingly insurmountable issues financially and contractually. However, using CLIENTscore, CEARTscore’s customizable weighting score, the developer was able to identify multiple paths forward and ultimately make a successful bid on the plant.
Because of the risks CEARTscore identified, the developer was able to lower the cost of acquisition by more than 75%.
03
Solar Developer: Sharpening Portfolio Prioritization
A solar developer was looking to differentiate themselves in a tight market with policy changes and looming deadlines.
The developer used CEARTscore to triage and prioritize its portfolio to focus on the most viable projects.
The developer was able to focus its efforts on marketing its three projects with the greatest chance of success and bankability.
04
Insurance Provider: Reducing Constraints on Due Diligence Capacity
An insurance provider was missing out on projects due to coverage capacity constraints.
Many of the firm proposals issued for projects had little chance in getting past due diligence, increasing the total allowed volume of proposals outstanding.
After running their projects through CEARTscore, the firm was able to assess the projects that did have a path forward in the due diligence stage, increasing proposal capacity and the volume of closed deals.