T2 Energy Transition
Fund

The T2 Energy Transition development capital fund offers financial products aimed at financing SMEs offering solutions to improve energy efficiency, promote the development of renewable energy and low-carbon mobility

Main project's drivers for reducing the greenhouse gas (GHG) emissions

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Energy and resource

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Energy Decarbonisation

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Energy efficiency improvements

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Improving
efficiency in non-energy resources

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Emission removal

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Financing low-carbon issuers or disinvestment from carbon assets

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Reduction of other greenhouse gases emission

Project objectives

The investment strategy of the T2 Energy Transition fund reflects Tikehau Capital's intention to contribute to the fight against climate change: - through its products and services thanks to the implementation of a platform dedicated to thematic and climate impact investment and, - through an approach of energy sobriety in its offices and the offsetting of "operational" carbon emissions (on scopes 1, 2 and 3 upstream).

T2 Energy Transition's investments focus on companies (SMEs) operating in three sectors that are key to achieving the 1.5°C target of the Paris agreements in line with the work of the International Energy Agency (IEA): (1) energy efficiency, storage and digitalization, (2) clean energy production and (3) low-carbon mobility. Through the investment of the T2 Energy Transition Fund, portfolio companies in these three sectors will be able to scale up and strengthen their climate impact strategy.

With more than 1 billion assets under management, the T2 Energy Transition Fund supports European mid-sized energy transition players (SMEs) in their development, transformation and expansion, particularly internationally.

The fund's investments focus on companies operating in three key sectors for the energy transition:

  • The improvement of energy efficiency, storage and digitalization: research and implementation of solutions for the deployment and optimization of energy storage, optimization of energy consumption in buildings and businesses.
  • Clean energy production: implementation of solutions for diversifying the energy mix, energy production projects using non-carbon resources.
  • Low-carbon mobility: development of infrastructure to accommodate electric vehicles, development of equipment and services related to low-carbon mobility and developments related to the use of natural gas in transport to replace diesel and marine fuel oil

Beyond a financial contribution, the T2 Energy Transition team provides complementary resources (climate expertise, support on the carbon footprint, HR and CSR strategy, digitalization and cybersecurity, etc.) that can be called upon by the entrepreneurs as and when they need them.

 

T2 Energy Transition makes no concessions on financial performance and the investment team is convinced that its positioning will allow it to leverage its impact.

Emission scope(s)

on which the project has a significant impact

  • Emission scopes
  • Description and quantification of associated GHG emissions
  • Clarification on the calculation

Scope 1

Direct emissions generated by the company's activity.

Scope 2

Indirect emissions associated with the company's electricity and heat consumption.

Scope 3

Emissions induced (upstream or downstream) by the company's activities, products and/or services in its value chain.

Emission Removal

Carbon sinks creation, (BECCS, CCU/S, …)

Avoided Emissions

Emissions avoided by the activities, products and/or services in charge of the project, or by the financing of emission reduction projects.

Avoided Emissions - Through their products and services, the portfolio companies contribute to reducing their customers' emissions.

  • 73 ktCO2e in year 1 909 ktCO2e from new projects installed in 2019 over the life of the project

To carry out the analysis, Tikehau Capital is surrounded by environmental experts such as ERM. The methodology used for the carbon footprint analysis is the GHG Protocol one and it covers the Scopes 1, 2 and 3 of the portfolio companies.

For the avoided emissions analysis, the baseline scenario depends on the company's activity. For a company like GreenYellow, concerning the activity of installation and distribution of renewable energy, the reference scenario is the country's energy mix. For Groupe Rougnon, the avoided emissions concern the replacement of boilers and the renovation of the building, so the reference scenario is the one that precedes the company's intervention.

For more information, download the complete project sheet.

Key points

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Invested amount

Assets under management: 1 billion euros
Amount deployed as of December 31, 2020: 234 million euros

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Starting date of the project

2018

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Project localisation

Europe

Project maturity level

Prototype laboratory test (TRL 7)

Real life testing (TRL 7-8)

Pre-commercial prototype (TRL 9)

Small-scale implementation

Medium to large scale implementation

Economic profitability of the project (ROI)

Short term (0-3years)

Middle term (4-10 years)

Long term (> 10 years)

Illustrations of the project

In addition to contributing to the fight against climate change (SDG 13) through the decarbonization of the energy system (SDG 7), the fund contributes to maintaining employment in portfolio companies (SDG 8) and to the implementation of innovation for sustainable development (SDG 9).

The project serves as the basis for the development of the impact platform at the Group level. Several products have been or are being launched at the Group level to replicate the T2 Energy Transition strategy across different asset classes. These include:

  • Tikehau Impact Lending within the Private Debt business
  • The North American Decarbonation Fund within the Private Equity activity
  • A Fixed Income impact strategy

A fund dedicated to asset finance

TotalEnergies participates as a partner and source of expertise on topics related to the energy transition, since the launch of the fund, more than 50 meetings have been organized with experts from the Group, particularly at the time of Due Diligences, in support of portfolio companies and on the construction of the project pipeline.

In addition, the companies in the fund benefit from Total’s ecosystem through privileged access to a base of more than 9,000 B2B customers and its global geographic footprint.

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Contact the company carrying the project :

nmillan@tikehaucapital.com