Energy is one of the most important inputs for economic development of any country. The energy sector itself is experiencing accelerating evolutions, namely those to address the needs for cleaner sources of energy. Our experts in energy finance work to closely follow the evolving needs of our clients and emerging leaders within the energy transition framework. With a full continuum of energy expertise, our team leverages collective intelligence to drive new areas such as carbon capture, green and blue hydrogen and ammonia, battery storage, interconnectors as well as green refineries. Our ambition, underlined by the bank’s strong commitment to the energy transition, remains to be a pioneer and a leader in advising and financing across the enlarging energy spectrum to best support both client and societal needs.
Allan has worked at Societe Generale for eight years and has been involved in the power sector for more than 30 years, initially as an engineer and then in finance. During his career he has advised on and/or financed power projects in Europe, MENA, the US and Asia, and in sectors ranging from green-field renewable energy, through gas and coal, to the acquisition of large international power portfolios.
Allan has extensive experience in the clean energy sector, including recently taking a leading role in the offshore wind sector. Most recently he has acted as Financial Advisor to a floating wind project, Dudgeon (400MW) and London Array (630MW) in the UK and the successful Borssele III&IV bid (700MW) in the Netherlands. He also advised an Asian client on the successful acquisition of an equity stake in a 900MW offshore wind development in Europe. In addition to his advisory assignments, Allan has been involved in arranging debt for several EUR1bn+ offshore wind projects in Europe.
In the wider clean energy sector, Allan has also played a leading role in carbon capture & storage field having advised on White Rose, Teesside Industrial CCS and Donn Valley projects in the UK, as well as serving on the UK Government’s original CCS Forum and leading the commercial section of the CCS Cost Reduction Task Force.
Allan has a BSc (Hons) in Mechanical Engineering, an MBA, is a Fellow of the Institution of Mechanical Engineers and a Chartered Engineer.
Federico Turegano began his career at Societe Generale Corporate & Investment Banking in Chicago in 1990 after 7 years at Continental Bank (now Bank of America) in Chicago and Miami.
Since joining Societe Generale Corporate & Investment Banking, he has covered large corporate clients in the US, was Deputy Head of the Financial Engineering team in Paris, was responsible for Societe Generale Corporate & Investment Banking’s Latin America network and was Deputy Head of the Corporates and Institutions Division for the Americas.
In 2007, he became Deputy Global Head of Natural Resources and Energy Financing as well as Head of the Energy Group for the Americas before being appointed Global Head of the business in 2008.
Federico Turegano holds a B.A. from Boston College and an MBA from the University of Chicago.
Key facts & figures
Questions to Federico Turegano, Global Head of Natural Resources and Energy Financing and Olivier Musset, Global Head of Energy
Interview published on Risk.net, May 5 2022
How Societe Generale helps new countries to access the renewables market?
Compared with what was to come, the first half of 2021 was a relatively benign period in the commodity and energy finance markets. “There was pent-up demand coming out of 2020, commodity prices were firming up, we did not yet know that inflation was going to be a problem … there was easy access to liquidity,” says Federico Turegano, New York-based global head of natural resources, energy and infrastructure at Societe Generale, winner of Energy Risk’s Commodity finance house of the year award.
Since then, Russia’s invasion of Ukraine, a crisis in energy markets and growing concerns about inflation have changed sentiment. “This year we’ve seen a more challenging environment for risk and decision-making,” Turegano says, although he notes that “the pipeline of business remains fairly strong”.
It’s not surprising that there is plenty to keep energy bankers busy. The unexpected post-Covid demand, the need to replace Russian energy exports and the continuing imperative to decarbonise global energy generation are all creating an enormous need for new extraction, supply and generation infrastructure across the energy complex. However, crucial to the Francebased bank’s success has been a willingness to branch out into new markets, says Olivier Musset, its Paris-based global head of energy.
“Last year, we were seeing a lot of liquidity. To be a leader, we had to go beyond the middle of the fairway, and into the rough,” he says. “It’s quite easy to find a bank to finance onshore renewables in western Europe; we want to go into areas which are less crowded.”
“We’ve been a leader in renewables in Europe for many years, and we’re happy to continue to be there and compete for that,” adds Turegano. “But the market is – thankfully – becoming commoditised. By helping Indonesia, Taiwan or Vietnam build out renewables, not only do we bring value but, in some cases, we’re truly opening the market.”
One such deal was the Cirata Floating Solar Photovoltaic (PV) project, a $114 million project financing, lead-arranged by Societe Generale for a joint venture between a subsidiary of PLN, Indonesia’s national utility, and Masdar Clean Energy, a developer and operator based in the United Arab Emirates.
The funds will be used to build the first floating PV project in Indonesia, constructing a large-scale, 145-megawatt (MW) system in a country that has historically relied on coal, gas and hydro for power generation, and which has limited land available for renewable energy, notes Musset.
As well as its novelty for the country, the size “is quite remarkable”, he says, adding that the investors needed to get comfortable with the technical resilience of an asset with a working life of 25 to 30 years. The deal is also uncovered, meaning the arranging banks are taking a long-term risk on Indonesia. “We have to trust Indonesia’s regulatory and legal framework to be reliable over the terms of the power purchase agreement.”
Is the financing of renewable projects challenging?
Societe Generale helped to break similar ground in Dubai, arranging a $900 million financing for a landmark waste-to-energy project. Once operational later this decade, the 200 MW Warsan facility will process 1.9 million tonnes of municipal solid waste each year, diverting 45% of Dubai’s waste from being sent to landfills.
“You wouldn’t expect to find a French bank financing a waste-to-energy project in Dubai,” says Musset. “But we want to go beyond our comfort zone, and this is an illustration of that.” The main challenge in such a financing was gaining comfort over the reliability of the waste stream. “As well as construction risk, you also need to understand the commissioning risk. Given its size, you not only need a reliable facility, but you also need perfect logistics to ensure you can collect all the waste going into it.”
The bank also sees opportunities for new business in US university public-private partnerships, with its first financial advisory for a long-term energy management partnership. Societe Generale advised on a $785 million, 50-year agreement that will see Georgetown Energy Partners, an entity owned by utility Engie and fund manager Axium Infrastructure, operate, maintain and modernise Georgetown University’s utility system.
“American universities, which have helped drive the debate around ESG (environment, social, governance) and climate change, have, to some degree, been a little bit slow in adjusting their own carbon footprints,” says Turegano. This financing will enable a modernisation that will reduce energy use intensity by 35% and put the university on course for carbon neutrality by 2030.
How Societe Generale takes into consideration the value chain?
Societe Generale has also been active in supporting the supply of the commodities that will enable the low-carbon transition. Last year, it helped refinance the Pilgangoora Lithium-Tantalum project, a mine in Western Australia extracting a key input for batteries for electric vehicles and energy storage.
“This is consistent with the shift that our metals and mining team made about seven years ago to refocus their business on the metals that are central to the energy transition,” says Turegano. “We’re doing some of the newer things, such as advising on battery factories and converting steel smelters to hydrogen, but we also recognise that some of the legacy business – of digging a hole in the ground and extracting metal or minerals – is still relevant and here to stay.”
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Awards and Rankings
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