Earnings Call: Q2 2021

Jul 14, 2021

Good morning and welcome to Aqua Horizon's 2nd quarter presentation. With me is Noma Tollefsen, CFO, Aqua Horizons Ivar Simonsen, Head of Communication, Aker Horizons Mary Quany, CEO, Mainstream and Paul Corrigan, CFO of Mainstream. I'll start with some highlights in the quarter, followed by an update from Mary on Mainstream, then Noma will speak to the financials and two areas of increasing importance, the carbon price and optimizing financing costs. And then I'll wrap up and we'll take Questions? It's again been a very active quarter with a number of key developments, including the finalizing of the Mainstream acquisition in accordance with the previously announced timeline and funding plan. The transaction was closed on May 11th and we are off and running. The integration has gone well, and we remain convinced that mainstream will be a great platform for Aker Horizon's global renewables Ambitions. Further, post closing, mainstream acquired a 405 Megawatt solar development portfolio in Vietnam. You'll hear more from Mary shortly. Other highlights include an MoU signed between Aker Carbon Capture and Carbfix, which is an important a step in the direction of a total CCS value chain offering. Carbfix provides a natural and permanent storage solution by turning CO2 into stone underground in less than 2 years. Now depending on the location, a storage solution can be provided on-site or alternatively to storage hubs, reducing end to end costs. Also announced by Aker Carbon Capture was the launch of Carbon Capture as a Service, called Carbon Capture Made Easy. You'll hear more about this in the presentation, but fundamentally, This is a new offering aiming to dramatically simplify the entire carbon capture process for an emitter and significantly reduce The total cost: AkerClean Hydrogen notably announced a partnership with Cape Omega and Shell for the development of the hydrogen hub on the island of Aukirag in Norway. It's still early days, but we are working across the Horizon's group between Aker Clean Hydrogen and Aker Carbon Capture as a technology partner, and are pleased with the pace of progress so far. Aker Offshore Wind also announced notable partnerships with BP and Stuttgart for Surly Anusha 2 and a partnership with OceanWinds, which is a fiftyfifty joint venture between EDPR and ONG for the Scotland leasing round in Scottish waters. Also in the quarter, Aker Horizons was admitted to the main list of the Oslo Stock Exchange in line with previously announced ambitions. In terms of reported net asset value, Aker Horizons saw a slight decrease from DKK 15,900,000,000 to DKK 15.6 1,000,000,000 kroner. Aker Clean Hydrogen and Aker Offshore Wind together saw a decrease of approximately 1,400,000,000 while Aker Carbon Capture saw an increase of approximately DKK 1,100,000,000 in the quarter. So with that overview of some key developments, I'll hand the word over to Mary, who will give an operational and business development update for mainstream. Good morning. I am really pleased to present today to you in the context of mainstream now being a 75% of Aker Horizons as we closed the equity transaction, as Christian said, on the 11th May. At the last investor presentation, I had said that we anticipated progress this quarter, particularly in Latin America and in Asia Pacific. So I'm very pleased to update you that over the last 2 months, we have now energized the first phase of our Condor portfolio in Chile. This is 3 wind and 1 solar project meeting this important construction milestone. We have also achieved financial close on the 3rd and final phase, Kopuye, Bringing a further 148.5 Megawatts through from our pipeline into construction. We've made very progress in the bilateral PPA market with the execution of 3 0 5 megawatts of PPAs, enabling 2 further projects to progress Towards financial close early next year. And in terms of our pipeline, which has increased by 8 60 megawatts, again, most notably with the addition of a 405 Megawatt solar portfolio in Vietnam. On the next slide, You will see that we continue to grow our global development pipeline, which now stands at a net 13.4 gigawatt portfolio. It's also important to note that in addition to this, we have an extensive number of projects in pre feasibility and feasibility analysis in the opportunities phase, an area on which we focus quite a lot of time and resources as we screen and funnel these opportunities so that we then bring capacity through into our development pipeline of a high quality. At the development stage, we have also added new capacity in Colombia. So that gives us almost 12 gigawatts of net development capacity. And again, here, important to note that about 40% This capacity is in the late stage development category, so that it's ripe for progression into commercialization and into pre construction. Then in the construction stage, we have added new capacity into construction in Chile, as I mentioned, so that we now have a net 1.4 gigawatts of capacity in construction today. And in the operational phase, we have the management of a significant operational Portfolio of 600 megawatts of wind assets in South Africa that mainstream operates for our Lekayla joint venture. And overall, our net ownership of operational assets is around 200 megawatts. On the next slide, you will see the Geographical spread, we have a strong onshore presence in Latin America, in Africa, in Asia Pacific and our offshore business growing from its European hub into APAC and into the Americas. As you can see on the bottom left hand side of the screen, an important point to draw your attention 2 is the split of our pipeline by technology, where you'll see an even balance between solar PV and onshore wind. And this is very important when it comes to the hybridization of projects, which I will come back to later. You can see also an increasing share of offshore wind and development. Since we closed the transaction with Aker Horizons, we have also embarked on a strategic review of new markets To add to our growing global presence, and I plan to update you on new market entry later in the year, expecting to bring additional countries and Potentially additional market segments into our business. So now let me turn to our platforms, and I'll go through them in some more detail. In Latin America, Chile is very much our cornerstone market where we are constructing a large fleet of projects. We are delivering our 1.4 gigawatt hybrid Andes Renovable's platform, wind and solar platform Through construction and into operations. This is made up of 7 wind and 3 solar projects, which are all now in construction today. The final phase of this is Couprie, where just last month we achieved financial close. And a couple of points To note here, firstly, we executed a 50 megawatt bilateral PPA, which adding to the regulated PPA that was already in place, That meant that we could increase the project capacity from 100 to 150 megawatts. And this 150 megawatt wind project is now the 10th In construction in parallel. The Condor portfolio, which is the first four projects in the platform, 3 wind and 1 solar, It's the most advanced, and I'm very pleased to report that all four projects are now energized. And this is a really important construction milestone, And it indicates that the construction program is on track for commercial operation in the second half of this year. We have also this month entered into a further 255 Megawatt bilateral PPA. And this will enable us to bring a further 2 projects, 1 Wind and 1 Solar from our pipeline through to financial close in 2022. Just last week, the Chilean government committed to an accelerated phase out of coal generation, and we anticipate further opportunities for the development wind and solar power to supply into the regulated electricity market. Chile also has a well defined hydrogen strategy, which is for Chile to be a global leader in the production of green hydrogen and green ammonia with a view to supplying customers right across Asia Pacific, the Americas and Europe. So this gives us a significant opportunity for collaboration with our colleagues in AquaClean Hydrogen to make use of mainstream's unparalleled market presence and development pipeline in renewable energy, together with the expertise of AquaClean Hydrogen. Moving on then to the Asia Pacific region. Vietnam has really leaped ahead In recent years, in the last two years really, to becoming one of the largest solar PV markets in the world. So we took the opportunity to acquire an 80% Stake in a 405 Megawatt solar portfolio, which balances our wind pipeline in Vietnam. We're targeting financial close in H1 'twenty two. And then meanwhile, our Sok Chang Offshore Wind Project is progressing well, the first phase of which is also targeted to reach financial close in the first half of next year. And we continue to work closely with industry and government to share our learning and our expertise on offshore wind. Just recently, we have been invited by the Ministry of Foreign Affairs to run a second capacity building event for officials on offshore wind development. And this indicates our leading position in the market with our offshore pipeline now at 1.9 gigawatts of gross capacity. In the Philippines, we are continuing to build our solar and wind development portfolio. And we expect that both Vietnam and the Philippines economies We'll recover very strongly post COVID, increasing the demand for electricity and the opportunities for renewable energy. Other markets of interest in the region that we are working on opportunities in include Australia, Indonesia, as well as Japan. Moving on then to Africa. In our African platform, our focus is on the upcoming South African Round 5 renewable energy procurement process. We have a very large pipeline of 6 gigawatts in South Africa, which has a very good geographical spread, as well as a balance of onshore wind and solar PV, which positions us very well. And the South African government's plan is that round 5 is to be followed shortly thereafter by a 6th round, again for renewable energy. We're also progressing opportunities in the emerging private PPA market in South Africa. And we know there the welcome announcement of recent Regulatory changes, which really opens up this sector. And our Lekayla Power joint venture, which is a leading Pan African platform. It has over 1 gigawatt growth of projects under construction or operational across South Africa, Egypt and Senegal. The projects in construction in Senegal and Egypt are now nearing completion. And mainstream, as I said earlier, is the operator of the fleet of 6 10 megawatts of assets For our Lekayla joint venture in South Africa. Moving on then to offshore. Mainstream has a very strong offshore wind heritage and a team that has developed 22% of the UK's current operational or in construction offshore wind fleet, including Europe's Largest offshore wind zone in Hornsey. We're very focused on upcoming tenders. We're actively preparing for licensing rounds In Scotland and in the USA. Our Scottwind submission takes place this week and the outcome of which is anticipated in Q1 of next year. And then our next Focus is the New York Bight Offshore Lease Auction, and the submission of that is expected by the end of this year. In our large scale Projects that are progressing through the development phase of already mentioned Vietnam, where our Sock Chang offshore wind farm is progressing well. And actually, this image here on the slide shows a project team safety briefing taking place on this offshore platform at our project site in Sokchang. And we're engaging on a cross industry basis with the new government to support the case for the maximum deployment of offshore wind in Vietnam over the coming decade. The recent publication by the World Bank of its offshore wind roadmap for the country has really helped to reinforce the very significant Opportunity for Vietnam to build a substantial offshore wind industry at a large scale. It points to a range of between 11 25 gigawatts our Progressing development on 3 sites for which we have submitted foreshore license applications. Then moving on to digitalization. Before our acquisition by Aker Horizons, We had already begun to invest in digital solutions to help to improve the development and operation of our assets. And now working closely with other Aker companies with Cognite and ACE, we are really accelerating this program as we leverage They are huge experience in this area. So we're really confident that we can deliver significant value from our joint electron program as we go through the rest of this year. And this is really timely for us as we focus on the operations phase of our fleet, particularly with a large volume of assets Completing construction and entering into operations. So our focus is on software development to optimize the data management And the use of that data for our expanding O and M activities. So some examples you see here, enabling real time condition monitoring and predictive maintenance To increase efficiencies, to reduce costs, to maximize uptime. Moving on then to Another topic that I mentioned earlier, hybridization. As the world is in this enormous transition From coal and gas power to renewable energy, we are very much leading the way in how to deliver very large amounts of low cost Bulk renewable energy generation onto the grid and manage it so as to provide a firm power output. There's quite a lot on this slide, but in simple terms, we bid and were awarded 27% of Chile's largest ever regulated auction, Which was not a renewable energy auction. It was technology neutral. And we used our pipeline of wind and solar PV, diverse spread of assets, as you can see here from the map on the right. So as to optimize this hybrid portfolio of wind and solar PV to service Firm power requirement of the PPAs. So if you look at the graph on the bottom left, each curve there represents The generation profile of each individual project. So each one taken on their own shows an individual variable profile, as you would expect. And then the graph on the right, this shows the generation profile of the 4 projects combined. And as you can see, this provides a much Smoother generation profile to match the demand under the PPA on an hourly basis. And this expertise is a key differentiator For us at Mainstream because it's enabled by the strength of the development pipeline that we had built up, the blend of wind and solar PV With a geographic spread combining different energy profiles. And all of this brought together by our in house Energy analysis expertise with 6 years of data, ensuring the predictability of the generation profiles. And this experience in Chile of delivering a diversified large scale hybrid platform of generation assets, This helps us to engage with governments in other markets who may be concerned about the impact of variable renewable energy on energy security and on grid Stability. I should also point out that this hybrid portfolio in Chile that is delivering From Power, this is done without any embedded storage. And so as battery storage continues to fall in I expect that we will be able to deliver this competitively priced supply profile across most of our other markets, even if they lack Chile's Abundant Resources and its Natural Topography. Moving on then to Power2X. I touched on hydrogen earlier, but Chile is also our 1st large scale opportunity To develop solutions to deliver Power to X, which is the ability to deliver renewable energy solutions to decarbonize some of the hardest To reach sections of industry through the generation of green hydrogen and green ammonia. And we're really very excited about this opportunity to collaborate with Aker Clean hydrogen and with the government of Chile to take forward this project. It really has the potential to unlock significant Additional value for both of our companies. We have targeted to bring 1 gigawatt of our pipeline through to this partnership, so as to very much be leading the way in terms of the Power to X, the use of the manufacturing of green hydrogen from renewable energy in Chile. Moving on then to sustainability. And sustainability really is very much at the core of everything that we do in mainstream. This week, we will publish our 3rd standalone sustainability report. And we really have a great sustainability story to tell from the work With our communities across all of our markets, our community focused approach to development through our climate leadership, our safety culture and our internal culture, which encourages innovation, diversity and inclusion. This year alone, we estimate that of all of the projects that we have developed at Mainstream, which are now operational, they have displaced Some 5,000,000 tons of CO2, so the equivalent of over 1,000,000 passenger cars not driven or over 11,500,000 barrels of oil not used. And I know that every company and every organization in the world has had to respond to the COVID pandemic over the last year. But I'm particularly proud that in the midst of all of the upheaval in people's lives through lockdown and working from home, that we were recognized as a great place to work. And I'm very much looking forward to working closely with the other portfolio companies this year as we collaborate on a combined approach to reporting on sustainability. Moving on then, let me now turn to the future. Our acquisition by Aker Horizons enables us To accelerate our growth trajectory, since 2008, we have built a global business with a development pipeline of quality assets across 4 continents. We have a very strong track record of success, of delivery, of winning auctions at scale, of raising project finance. And now we have additional resources to allow us to go further and go faster. So the next slide gives you a sense Of the level of planned activity and this sense of momentum that we're seeing out to the end of this year and the first half of next year. We will be active across all of our platforms, creating organic value, and we will also take advantage of inorganic Growth opportunities as they appear. And on to the next slide. Beyond the short term Perspective, our ambition is to become a renewable energy major with at scale growth built on our existing global footprint. Our experience and end to end capabilities and development and throughout the project lifecycle, onshore and offshore, Our innovation in large scale hybridization and the delivery of firm power and leveraging the synergies available across the Aker Group. So I very much look forward to updating you as we continue to grow. And I'm very happy to take any questions at the end. So thank you for your attention. And now I hand you over to Nana. Thank you, Marie. So in this presentation we will focus on the combined numbers of the parent and holding companies, while we can find the consolidated numbers in our half year report. So starting on slide 35, We reported a net profit of negative NOK 273,000,000 in the quarter, mainly reflecting the value change our listed shareholdings by a negative kroner 154,000,000 and net financial items of negative kroner 109,000,000 kroner. A large part of the financial items is non cash. We are paying cash interest on the green bond and on the RCF, While there is payment in kind interest on the convertible bond and the shareholder loan. Cash flow from operating activities reflects General running costs and interest paid and amounted to negative SEK65 1,000,000 in the quarter. Investing activities reflect Aker Horizon's investment in mainstream and Supernode, where the 7,700,000,000 kronor in mainstream is the sum of our investment between the Position valuing the company to €900,000,000 and the equity injection of €109,000,000 both on a 100% basis In addition to transaction costs. Net proceeds from the RCF is included in financing activities. Jumping to slide 37. This gives an overview of our current financing facilities and committed credit facilities. In Aker Horizons we currently have 4 sources of debt financing. We have a subordinated shareholder loan of DKK 2,000,000,000. This loan carries an interest cost of 6% with a deferral option against a 1% deferral fee and it matures in 2026. We have a subordinated convertible bond which was issued in connection with the private placement in February. It carries a 1.5 percent payment in kind interest and has a conversion price of DKK43.75 per share and it matures also in 2026. And note that for accounting purposes, we have recorded DKK348,000,000 of the convertible bond as equity at inception And the remaining part is that. In addition to the subordinated debt, we have the green bond which we issued in February, Where we raised DKK 2,500,000,000 with a margin of 3.25 percent. The bond matures in 2025. And lastly, the RCF. And in the quarter, we increased the facility from €170,000,000 to €400,000,000 with an accordion option, which potentially brings the Total amount up to €500,000,000 The RCF has a duration of 3 years with 1 plus 1 year options. And we've currently drawn DKK 560,000,000 on the RCF. So moving on to the next slide. To the left you can see the build up of our available liquidity between the undrawn RCF and cash amounting to DKK 3,800,000,000 at Q2. The net interest bearing debt stood at SEK 5,900,000,000 per Q2 as expected and previously communicated post the mainstream transaction. So moving on to slide 39, the final final slide. This shows our capital structure. The listed assets are recorded at market value and unlisted assets at book value. As you can see, the loan to value as defined by the covenant is estimated to 14% after the mainstream transaction, which gives significant headroom to our covenant of 50%. So that concludes the financial section, and I'll now be moving on to the next section on strategic perspectives. So starting with the carbon price on Slide 42. It is one of the most fundamental indicators that we are tracking in Aker Horizons. The carbon price will be an enabler and an accelerator of the massive transition we have in front of As well as the commercialization of several of our portfolio companies. So there are different regimes around the globe, But the EU Emissions Trading Scheme, the EU ETS, is the world's 1st carbon market and it remains by far the biggest today. It was launched in 2,005 as the cornerstone for the EU strategy for cutting emissions. This was at the time, more than 15 years ago, truly revolutionary, putting a price on emissions And following the polluter PACE principle. It is a cap and trade system, meaning that the system works by putting a limit on overall emissions And reducing this limit over time so that total emissions fall. It covers around 45% of total EU emissions today. And the history of the system has been interesting. It was launched in 2,005 And the price dramatically fell to practically 0 as emitters had overestimated their emissions and there was excess supply of allowances. The EU adjusted the system and the price recovered, but then the financial crisis hit and again excess supply. And there was a period where we can import international credits into the EU ETS, which again gave too much supply and lower carbon prices. And prices traded below €10 per tonne between 20122017. Then at the end of 2017, And the reform of the system was agreed on, called the market stability reserve or the MSR. And what the MSR does is address the surplus of allowances and improving the system's resilience to major shocks. So it uses predefined rules to either withhold a certain amount of allowances from auctions and add them to the reserve or take allowances from the reserve And inject them into the market through auction. And since the launch of the MSR, the carbon price has gone from under €10 per tonne to over €50 per tonne. And it is estimated that a carbon price of around €130 per tonne is required by 2,030 to be on a 1.5 degree pathway. So as we've seen thus far from the history of the EU ETS, it's all about supply and demand. And the mechanic is that demand is forced And also increasing as new sectors are added to the system and supply is restricted and programmed to fall. And further regulations are in the works. The EU will launch its fit for 55 package today. So in Aker Horizons, we view it as Critical to have a strong perspective on the carbon price. And we have dedicated people to understand all aspects of this and to connect the dots between the carbon price, Regulation and different decarbonization technologies relying on this price. And as a part of our strategic focus on this, We will be taking financial position in the EUAs. And for Aker carbon capture, for example, The carbon price is critical for the commercial viability of carbon capture. So then moving on to slide 43. Aker Carbon Capture reported their Q2 this Monday, and as a part of their Q2 presentation, they launched a new business model, which they call Carbon capture made easy. It is essentially offering carbon capture as a service. So a little background for those of you who don't follow Aker Carbon Capture. We fundamentally believe that carbon capture will be a big part of the decarbonization puzzle. The IEA Net Zero 2,050 roadmap sees an increase To 1.3 gigatons of CO2 captured by 2,030 and 5.2 gigatons of CO2 captured by 2,050. The market is coming, and it's a question of when. And our mission is to do everything we can to Drive the adoption of carbon capture forward in time. And for us, that means 2 fundamental things. The first one being reducing the full cost of the value chain. That means the all in cost of capturing, transporting and storing a ton of CO2. And secondly, it means making it easy for the customer to sign up for carbon capture. And these 2 are intimately interlinked. A large part of bringing costs down is about learning by doing. We want to generate more sales to drive down the cost of capture Sure more rapidly, which again will generate more sales. And interest from companies that want to reduce their industrial emissions has skyrocketed. But to many potential clients, carbon capture and storage is a new concept. It requires upfront investments and a lot of contracts and interfaces. So the Carbon Capture as a service offering has been developed as a response to clients expressing they want someone to handle the full value chain, including financing. And carbon capture made easy simply means that the customer will pay per tonne CO2 captured And Aker Carbon Capture will handle the CO2 through the value chain from point of emission to permanent storage. So moving on to the next slide, Aker Carbon Capture is doing all they can to reduce the operational cost of the Full value chain of carbon capture and storage. But a key part of taking down the cost is reducing the capital cost. There is enormous global interest to fund planet positive projects. And importantly, there are different pools of capital within that space. And what we want to do is match the returns and risk with the appropriate pool of capital to minimize the cost of capital. And for the carbon capture assets, we anticipate going through a journey from a few assets to achieving true scale. The way we see it will go through a de risking phase and we will gradually have a platform with core infrastructure characteristics, Including long term offtake contracts. And doing it at scale will allow for further capital cost compression. So under working name Green Yield, we believe we will have a competitive advantage in understanding, pricing and managing the technology and counterparty risk. We know Aker carbon capture, we know the technology, we understand the model. And this model is not only relevant for carbon Decarbonization projects tend to be capital intensive and we have identified other potential asset classes as well. So Green Yield will invite strategic partners with a shared view on planet positive investing, a long term perspective, And we are already in dialogue with several potential partners. Green Yield will hold investments for the long term with the potential to provide Stable long term cash flows to Aker Solutions. And with that, I hand it back to you, Christian. Okay, so what you've just heard is an emerging business opportunity for Aqua Horizons that starts For us, we're solving for the lowest possible total cost for decarbonization projects by optimizing the cost of Capital. Now in this specific case of carbon capture as a service, we think it will ultimately arrive at infrastructure like financing with longer term contracts and standardized equipment, which will lend itself well for long term debt and yield oriented investors. Now I can't stress enough, by the way, the importance of standardized equipment and a modularized approach to facilitate cost reduction and increased adoption. This is core to Aker Carbon Capture's approach. So the question becomes for Aker Carbon Capture in particular, how do we get there to this end state of Financial structure as quickly and cost efficiently as possible. Now Aker Horizons, which knows these assets well, has industrial insights and can draw on the benefit of the Aker Group's experience within Financial Structuring and Leasing. He sees an opportunity to facilitate this development and work to bring down the cost of capital as much as possible, including by maximizing the use of long term third party capital over time. As Aker Carbon Capture has communicated, this is still under development and will be presented in detail on September 9th at their Capital Markets Day. It's also worth mentioning that through this work, we've come across other decarbonization infrastructure that can potentially offer attractive returns and serve well to bring scale to what we are calling green yield. We have identified key resources for this task, and we'll spend the next 6 to 12 months maturing and detailing this concept internally and together with potential partners. So at a minimum, we see green yield being a tool among several to lower the cost of capital for some of our own projects and potentially building green yield to a fully fledged business era in its own right with stable long term cash flows. So now taking a step back and looking at the bigger picture in closing. This week, it's 1 year since we first announced Aker Horizons. We were a few dozen people, and now we're nearly 1,000. We've announced several partnerships with companies such as Microsoft, Ersted, BP, Yara, Stopkraft, and Ocean Wins. We've raised several kroner in financing, and we have the organizational infrastructure now in place to grow our businesses and execute on those plans. Our strategic priorities are clear, as laid out on this final slide, number 45. They're similar to as in the Q1, but updated for the work around carbon capture as a service as well as green yield. Now key priority remains business development, partnerships and M and A across the portfolio, as well as continuing to build a renewable energy major in a targeted way through mainstream. So with that, I thank you for your time, and we're happy to take some questions. Okay. Are we ready for some questions? So first question first two questions are for Mary in Dublin. Can you elaborate on what you mean by creating a renewable energy major? The second question is, how do you see competition impacting mainstream? Thank you, Ivar, and thank you for the questions. As the world is transitioning to clean energy and this enormous transition is underway, rather than the oil majors of Today, our focus is very much on the renewable energy majors of tomorrow. So you'll have heard there, as I presented, that we have our stated ambition To accelerate our growth, bringing 5.5 gigawatts of projects to financial close by 2023. This will enable Just slightly less than 7 gigawatts of projects in construction or operations by that date. We are increasing our Geographical footprint, as I mentioned, both organically and inorganically. And as renewable energy increasingly will provide firm power to a Broader range of customers. And our focus is very much on enhancing our expertise across 4 key areas. So the first one being flexible generation. By that, I mean the hybridization of projects, storage capabilities and expertise. The second being Energy Solutions, combining bilateral PPAs, managing merchant exposures, power trading capabilities. The third as an operator, Developing an O and M center of excellence, the optimization during operations, as I mentioned earlier, and then technology being at the forefront of Technology, digitalization across the business, being the most efficient, lowering the LCOE, Power to X, as I mentioned earlier. So all of these Factors and capabilities I see as being 4 core areas in terms of building the renewable energy major and based on Our existing track record development expertise and end to end capabilities. Then if I take the second Question, how do we see competition impacting mainstream? Clearly, during this transition, there is increasing competition, But also increasing opportunity. And again, back to our core differentiators at mainstream being our development skill set, Our knowledge of the market, our market entry expertise, particularly in establishing early market entrant positions In emerging markets and in growth markets, again, a core advantage. And as the industry evolves and as the competitive landscape Has been evolving, so too has mainstream evolved and will continue to do so. So if I were to look back to the past, Our previous business model would have been to develop and exit at financial close. And we have pivoted over the last number of years To ownership during construction and beyond. And that evolution, of course, continues with the longer term perspective of the Aker Group. And that gives us the ability to extract returns right throughout the project lifecycle. So during development, during construction, during operations, And to extract those returns in multiple ways. So we're very confident that we can continue to deliver best in class returns in each of our our Horizon. Yeah. So for us, As talked about earlier in the big picture is how do we optimize capital costs for these companies and projects that we have, and we have a number of tools. We have project level financing. We have partnerships, farm downs, corporate level financing and portfolio companies. We have a number of sources of capital in Aker Horizons, as Noma described earlier. And as we've spoken a little bit here today in the context of green yield, we see a lot of interest for this type of infrastructure like investments, and we'll be exploring those private sources of capital over the next 6 to 12 months. So for us, it may very well play a part in the bigger picture and the many tools that we have in terms of financing. So the current operating losses in our business is really by design. Our portfolio companies are in Our front runners in their respective fields, and we're in the early stages of a massive transition. So we're seeing just tremendous market opportunities, and We need to invest now and build capabilities now to position ourselves for that long term growth and that long term value. And with regards to how we will handle that capital need, we have a lot of flexibility in terms of how we finance that journey. And Christian just spoke a little bit about it, but we have the ability to finance at the project level with project financing, inviting parts, Potentially farming down. And we can fund that the portfolio company level with corporate level debt as well as in Aker Horizons. And what we just announced today with Green Yields, we see as a new tool in our toolbox. So we feel that we have significant flexibility in financing that journey. Okay. Final question. For Christian, what kind of strategic partners would you like to see investing in green? Or have you had interest from Potential partners already are in discussions to go on interest. Well, it's still early days, But we have seen quite a bit of interest over the past several months for financing these types of planet positive projects. What we're going to do is go through a systematic process over the next 6 to 12 months, speaking to sources of capital and potential partners. Fundamentally, for us, it's important to be aligned around ESG and the importance of that. Another factor is the long term approach and being able to offer competitive capital over time and then also finding partners that are complementary. Our starting point is very much the industrial side. So finding partners that we can complement ourselves with will be a key factor. So overall, the world, there's a lot of capital, it's abundant capital, particularly for these types of projects. It's important to be smart about structuring, and that's a process that we'll be going through over the coming months. Okay. That concludes the questions for now. Apologies if there was a sound issue on the questions, but that This is the wrap up for today, Christian. Okay. I would just say thank you very much for your time, and we'll speak soon at the 3rd quarter result presentation. Bye bye.