New start-up Endeavor Energy to target African thermal and hydro projects

Private equity firm Denham Capital has formed an energy company that will target thermal and hydro projects in Africa.

Denham has started Endeavor Energy with $100m of its own money and plans to win co-investment from other financial backers and project level equity partners in the future.

The new company will invest in thermal and hydroelectric power projects across Africa.

Denham said that Endeavor Energy’s primary focus “will be to identify and develop independent power projects in mid-to-late stage development within capacity short markets where the projects can help reduce the cost of power”.

It added that Endeavor “will team up with local partners as it develops projects”.

Endeavor is considering a portfolio of power projects in various stages of development in Botswana, Cameroon, Ghana, Malawi, Mozambique, Nigeria, Sierra Leone, Tanzania and other countries, representing over 2000 MW of aggregate generating capacity. It expects to invest in controlling equity stakes over the next five years as these projects are developed and financed.

Scott Mackin, Denham Capital managing partner, said Endeavor projects “will provide necessary investment in energy infrastructure to locations in significant need of new electric generating capacity in Africa and we are excited to have the opportunity to back this management team”.

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