BioTherm Energy Making The Change

INSPIRED BY YOUR SUCCESS

DECEMBER 2018www.endeavourmagazine.com

HTTPS://BIOTHERMENERGY.COM // 27 011 367 4600

MAKING THE CHANGEWith climate issues increasingly in the news and on our minds, the shift towards renewable energy is ever more pressing. However, it isn’t only good for the planet – it can also be good for business. We spoke with Jasandra Nyker, CEO of BioTherm Energy, a pan-African renewable energy development and investment platform who turned their attention away from gas and towards a greener, richer future.

WRITTEN BY ALICE INSTONE-BREWER

www.littlegatepublishing.com

presents

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Their renewable energy customers, who range from power utilities to commercial and industrial businesses, can look to receive support in four main areas, namely project

development, project and construction management, operations and maintenance, and asset management and administration. They are involved with projects both throughout South Africa and further afield, once their various developments and expansions throughout the region are complete.

CEO Jasandra Nyker has been with the company since its transformation: “I came in as part of its turnaround efforts. I have been in the clean energy sector since 2005 and I have worked in Kuwait, the United Kingdom, the USA and Brazil, investing in both small and large clean energy projects and technologies. My appointment as CEO at BioTherm was my first stint as being head of the helm.”

That first ‘stint’ quickly proved successful; taking all of the experience she had gained in her previous roles within renewable energy, Jasandra was able to turn BioTherm around not only in terms of sustainability, but also in terms of profit and successful business practices: “At the time of my arrival, BioTherm had a troubled 4MW waste gas project. Today it has over 500MW’s secured, with 52MW operational, 284MW in construction and the rest in the process of reaching financial close in the short to medium term.”

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Founded in 2003, South African company BioTherm Energy initially focused on the development of gas and waste heat cogeneration projects. However, in 2011, the company was restructured and refocused: as concerns about sustainability began to gain real attention around the world, the company transformed themselves into a renewable energy platform, with a new focus on producing and supporting solar and wind power in particular.

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presented an interesting proposition of turning around an existing development platform into a success renewable energy player on the African continent. Over the last seven years, the company has grown from strength to strength amidst some very difficult times, primarily due to delays in the rollout of renewables in Africa. Today we are a leading African development and investment platform and have become a formidable player competing against the international utilities with their large and very strong balance sheets – a bit of an elephant and ant story!”

BioTherm’s head offices are located in Johannesburg, and they also operate three renewable energy projects in South Africa, situated in the Northern Cape and Western Cape. In addition, a further four projects are currently under construction, again throughout South Africa. To date, the company does not have any assets outside of the country, but that doesn’t mean it isn’t expanding: it already has a presence in Ghana, has several projects beginning to explore development in both Southern and East Africa, as well as multiple projects that have reached a preferred bidder in West Africa. “In August 2018, we reached financial close on four projects totalling 284 MW, awarded under Bid Window IV of the REIPPP Program in South Africa. These projects have

successfully commenced construction. We also won two bids this year - our 25MW Ivorian project which is in the final rounds of Project Document negotiation, and our 27MW of C&I projects with a leading mining company here in South Africa. This is testament to BioTherm’s ability to deliver projects in new markets.”

“Our main objective is to reach site completion on the 284 MW projects currently under construction within the construction timelines we have set. We would also like to reach financial closure and commence construction on our two solar projects in Burkina Faso, one solar PV project in Ivory Coast and a private PPA project in South Africa for a mining utility.” The first of their construction plans in South Africa is set to reach completion and enter operations in October 2019.

Growth is the sign of a successful business, but it is also necessary in order to compete; since the renewable energy sector started receiving heavier attention and investment, it has also become a competitive market, and for BioTherm, getting involved was only the beginning – they now need to keep up and keep ahead. Jasandra elaborated on the state of the industry: “Over the past few years, the industry has grown rapidly and become competitive due to the declining costs of renewable energy technology, as well

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as potential advanced technologies such as energy storage and digitalisation to further reduce costs, spark growth and improve the value and reliability of renewable energy assets.”

Competition is not the only issue that BioTherm has to tackle, either: “Policy uncertainty, political unrest and customer demand are challenges that the sector continually faces across Africa and globally.” In a state of political uncertainty, be it economically or an uncertainty regarding government policy, the heavy initial investments needed to pursue renewable energy may be concerning for many. However, despite the challenges, BioTherm is not only growing and thriving, but has successfully set multiple firsts in its industry. Out of the South African renewable energy market, it was the first company to monetise carbon credits, to complete project financing of a renewable energy project, to secure three renewable energy projects in South Africa’s Department of Energy’s REIPPP Program, to secure a utility scale private PPA, and to win solar projects in Ghana and Côte d’Ivoire by way of a competitive auction. It was also the first and is still the largest renewable energy investment in the African continent by an international investor.

These achievements are, in part, a testament to the instincts and industry insight that Jasandra’s background in renewable

energy has allowed her to foster at BioTherm. We asked her more about her journey in her career leading up to joining the company’s re-structure:

“After my MBA and prior to joining BioTherm, I worked in London first for Lehman Brothers and then Booz Allen Hamilton, where I focused on alternative energy and private equity related projects. In 2006, I established one of the first alternative energy funds for one of the leading national oil companies in the Middle East, for which I subsequently led multiple alternative energy investments.

“I then joined the PCG Clean Energy and Technology Fund in the US, where I led the direct investment activities of a dual focussed Fund. I played an active role in the business development, fundraising and international market rollout of many of our portfolio companies, and I was also a board director on four portfolio companies (Brazil, US) and a board observer for three companies (Germany, US). During this time, I also sat as a board advisor to the Middle Eastern investment fund in which I had previously invested.”

With this impressive bank of experience behind her, Jasandra knew her industry well, and was able to lead BioTherm in a successful strategy that applied all of the lessons of her career.

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However, it is also a testament to the entire team, and Jasandra is the first to applaud their consistent work: “Our dedicated and hard-working employees are the business’ greatest asset, and investment in our team is vital for the success of a business. At BioTherm, we understand the need for employee progression and thus we continuously provide opportunities for employees to develop themselves. We like to challenge our employees by giving them the opportunities to expand their capabilities by taking on complex project opportunities, and we also promote an environment where employees can be multi-skilled.”

In any team, full success is, of course, a result of both the leadership and the people themselves, and the ways in which they are able to work together in harmony and towards the same goal. No matter how hard-working the BioTherm team or how experienced their CEO, it is the teamwork that makes the difference between a good company and a great company. “The key is to lead by example. By showing commitment and passion about the business, it filters through the organisation and inspires and motivates the team. I also feel the key is having staff feel like it’s their own business and that they are part of writing the narrative by believing in its mission. We are fairly flat structure where we promote an open

environment. I encourage employees to always provide feedback on the company’s evolving strategy and to continually come up with ways to do things better.”

“Equally important is a shared common vision in terms of what we want to be - Africa’s leading energy development company.” With the milestones already behind them and the broad slate of expanding projects already underway, BioTherm are pursuing this shared vision with a focused dedication. Renewable energy is an industry that it is exciting and rewarding to see flourishing the world over, and its expanding foothold in Africa is a promising event not only for the environment, but the economy of the region. Non-renewables are finite, but a solid investment in clean energy could set African countries up for the long-term. With companies like BioTherm already chasing that goal, we look forward to seeing what the scope of the industry will be in five to ten years’ time.

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