ITI Energy Business Strategy

ITI Energy is a private limited company, venture capital funded and owner of proprietary IP for an advanced gasification system. We have considerable technical "know how" on the design and construction of power plants using Gasifiers and Internal Combustion Engines. The technology we employ incorporates fully proven technology which provides efficient production of energy from waste.

ITI's business strategy is to leverage the efficiency and price competitiveness of its technology to retain ownership of a proportion of the equity or earnings stream of every project it is involved in. Thus ITI seeks to develop Build Own Operate projects for its own account or with clients and Joint Venture partners which allows it to remain a long term project participant.

Generally, ITI's strategy has been well received by the market. While there are certain clients who would prefer to simply purchase plant, through joint venturing ITI is prepared to supply equipment on much tighter margins thus reducing the capital cost of the project, lowering the risk and enhancing the IRRs. Furthermore, the plant is capable of markedly greater performance than we would be able to warrant as capital goods suppliers so by remaining involved in the operation we can maximise the value extracted from the assets. ITI's strategy is to reinvest what margin it does make on the equipment "sale", directly into the equity of the projects or into development of new ones.

With more established technologies this approach would be likely to extend sales cycles or project development negotiations, however with a new technology in a market where there is little established competition a joint venture approach is if anything reassuring to our clients. Project development cycles are generally quite extended in this sector and by working with our clients in this manner they have the opportunity to understand the technology and we are able to ensure that suitable precedents are set in planning, permitting and operations.

Our business model includes working with project developers as well as Build Own Operate, Joint Ventures, Licence and Royalty and the structure of our strategy is as follows:-

Business Strategy Diagram

  • Build, own and operate: ITI will identify and develop the site and finance, construct and operate the plant. ITI will retain 100% ownership and control, so of all the options it provides the best value return and greater financing leverage for future projects.
  • Joint Venture: ITI expects the majority of its projects to be undertaken in Joint Venture, either with one of its development partners or with waste management contractors, energy off-takers or site owners. Each JV will be incorporated in a non-recourse SPV which will house one or multiple projects. ITI targets 50% equity ownership of each project, though acknowledges that in some cases there will be more than one partner involved so ownership may diminish. The partners in the JV will charge their services (management, operations and maintenance etc) to the SPV on a pre-agreed, open book basis.
  • Technology licence and performance royalty: Where a potential client or partner does not wish to set up a JV ITI offers the option of an annual licence fee and performance based royalty agreement; subject to certain performance criteria ITI would capture a substantial share of the nett income or revenue stream of the project. In most cases ITI will provide the O&M to the plant and even where it does not it will remotely monitor and manage the optimisation of the plant through a remote SCADA system.
  • Gasifier sale: ITI may make the occasional sale of a gasifier in order to seed a market with a reference plant. These sales would usually only be made to an academic or government-owned institution.

ITI Energy's market is Worldwide and we have developed interest from many parts of Europe, The Americas, S.E Asia, Africa and Australasia to name but a few locations.

ITI Energy's market focus is in the conversion of a wide range of waste streams suitable for conversion into initially syngas which is then used to convert into Electrical Energy using an Internal Combustion Engine. The projects we have already in our pipeline both in the UK and throughout the World include:

  • Waste Management Companies for the diversion of waste from landfill.
  • Traditional small scale energy generators wanting to convert to renewable energy production.
  • Companies who have a process waste stream wanting to convert this waste into energy.
  • Businesses who want to stabilise their energy costs through the production of renewable energy.
  • Project Developers who have developed both the need and resources for the production of energy generated from waste.
  • Local Authorities looking for alternative ways of diverting waste from landfill other than by Incineration.
  • Build Own and Operate where ITI Energy will set up their own site with or without a project partner.

The feedstock used in the above projects will include Municipal Solid Waste (MSW), Refuse Derived Fuel (RDF), Solid Recovered Fuel (SRF), Chipped Wood (either contaminated clean or forestry waste), Energy Crops, Residual Biomass Waste, Bone meal, Chicken Litter and many more. The feedstocks can be blended if required.