Dagmar Burhop, Farm Credit Canada

FCC financing
for alternative
energy projects
A presentation to the
German-Canadian
Chamber of Commerce
Dagmar Burhop, Senior Credit Manager, Guelph
November 22, 2012
FCC is committed to
Canadian agriculture
Meeting customer needs
Governance and mission
How does FCC make
lending decisions?
The 4 M’s
• Money
• Management
• Materials
• Markets
Credit checks
FCC?
FCC Energy
Energy
Loan
Loan
launch: March 1,
2010
Energy Loan features
• Based on standard loan, five-year term
• On first $500,000
– No loan processing fees
• Must use proceeds for construction or
installation of geothermal, wind, solar or
biogas projects.
• Variable or fixed rate
Solar photovoltaics (PV)
• Create electricity from
sunlight
• Best suited:
– for off-grid farm
applications
– where feed-in tariff is
available
• With feed-in tariff payback
~ 10 years
• Average-sized farm and
farmhouse would require
roughly a 10kW system
• Approximate cost $75,000
Solar thermal
Energy from the sun
heats water
Geothermal
Wind
Turns wind
energy into
electricity
Biogas
• Turns manure into gas
to create heat or power
• The solid byproduct is
fertilizer, compost or
bedding
Energy planning
•
•
Map out the current state of business work flow,
and conduct your own energy audit
.
Address specific energy questions:
- What are my biggest energy costs and
opportunities?
- Where am I most vulnerable?
- Can I substitute or convert? At what cost?
- Role of conservation in my operation?
- Business location and model?
Learnings from others
• What have other Canadians done?
• What’s happening in other countries?
• Learnings from other like and non-like
businesses?
Working with others
• What do the industry associations I belong to
have to offer?
• Is my business large enough to go it alone or
would I benefit from a partner?
• Are there opportunities to collaborate with
other parties (government, educational
institutions, etc.)?
• Does sharing equipment and technology
make sense?
Security
• All assets (real and personal property)
– intellectual property, if patented
equipment or process involved
• Assignment of insurance
– perils, environmental, business
interruption and liability
• Guarantees
– unless company is publicly traded