Commercial Services
IVG formed its Commercial Services group in June 2009 to expand the suite of products and services that IVG can offer to the energy industry. Commercial Services (“CS”) has predominately focused on providing origination and structuring services to energy companies. This includes assisting customers with locating viable buyers/sellers of longer dated structured products (e.g. wind power and anaerobic digestion off-take agreements, tolling options, etc.). Commercial Services can also provide structuring services, including valuing real-option value in an energy portfolio, valuing cross-commodity options, etc.
In addition to assisting customers with natural gas, electricity ethanol and biodiesel (IVG’s standard brokerage products), the Commercial Services group can also assist customers with crude oil, refined products, NGLs and renewables (RECs, emissions and carbon credits).
Commercial Services’ personnel have extensive experience with virtually all energy commodities as well as within nearly all of the functional areas within the energy industry (e.g. trading, origination, structuring, risk management, etc). If you have an energy risk management issue/problem, Commercial Services should be able to provide you with assistance.
Commercial Services provides energy risk management products and services in the following areas:
Origination Services
Commercial Services can assist you with finding credit-worthy buyers/sellers of your long-term and/or structured products needs. This can include off-take agreements for project development, electricity tolls, heat rate options, etc.
Structuring Services
Commercial Services can assist you with determining the fair market value of your energy risk management product needs. This can include providing a valuation of an energy trading portfolio as well as rendering a “fairness opinion” for M&A transactions.
Capital Raising Activities
Commercial Services can assist energy companies with raising debt and/or equity capital. IVG and its CS group has strong relationships with numerous institutions, energy companies and high net-worth individuals, all of whom are willing to look at debt and/or equity investment opportunities. To date, CS has been retained by several energy companies to assist them in their capital raising activities as well as assist them with evaluating their strategic alternatives.
Fuel Sales
Commercial Services can supply Commercial and Industrial companies with their fuel supply needs, including diesel (both on and off-road) and gasoline. CS can supply you with the necessary fuel tank (free to charge) and manage all of your fuel supply logistics requirements. CS can also assist you with any of your risk management needs related to fuel supply such as hedging your price exposure via swaps or options.
Project Development
Commercial Services is presently developing multiple wood pelleting facilities in southeast Texas. CS is targeting exporting the wood pellets to Europe and/or Asia for industrial applications, mostly to be co-fired with coal in coal-fired electricity generation facilities. Commercial Services is also developing multiple diesel fuel sales locations in Texas and Louisiana.
Consulting and Advisory Services
Commercial Services can provide consulting and advisory services to meet any of your energy risk management needs. CS is available to provide consulting and advisory services on a project basis as well as on a longer-term retainer basis. CS can also provide you with contracting services whereby the CS group can enable you to meet some of your short-term (or long-term) employment needs without the customer having to hire a full-time employee.