Ukrainian Entrepreneur Invests $85 Million Stake in Energy Storage
Ukrainian investment banker Igor Mazepa invested in two companies in the energy sector within three months, buying the Ukrainian subsidiary of the Chinese company Beiken and setting up his own energy-generating company, Forbes Ukraine reported.
Earlier this year, Mazepa’s investment company Concorde Capital purchased the oil and gas service company Beiken Energy Ukraine, a subsidiary of Chinese Beiken Energy Group. The company specializes in engineering services in oil and gas, coal mine methane extraction management, coalbed methane development, clean utilization of coal, and chemical products and services.
The deal is estimated to be worth $25 million, according to a Forbes source. Mazepa said the amount was higher but did not disclose details. The Chinese decided to sell their Ukrainian business due to being unable to withdraw capital, Forbes reported.
The company owns eight drilling rigs with a lifting capacity of 125–450 tons. If more are needed, Mazepa is ready to buy them through the Chinese Beiken.
The entrepreneur has also founded an energy-generating company. Initial investments amount to $60 million, part of which will go towards energy storage – technology that helps balance energy supply and demand, making power systems more efficient and reliable.
Mazepa plans to build wind and gas power plants, prioritizing energy storage systems and gas generation, he told Forbes.
The first project is an energy storage facility with a capacity of 50 MW worth €32 million ($33.6 million), to be launched by late summer 2025. The second project is a combination of energy storage and gas generation worth €30 million ($32.4 million).
Mazepa expects that energy storage, combined with gas generation, will provide a 30% return on investment and that the invested funds will pay off in 2.5–3 years.
“No model works without an energy storage system,” Mazepa told Forbes. “It’s energy storage that allows the accumulation of solar and wind energy and selling it during peak consumption – in the morning or evening – at the highest prices.”
The investor raised €32 million for the first project and is collaborating with four partners.
He plans to refinance part of the funds once the equipment arrives in Ukraine and a bank can use it as collateral.
“It’s important to showcase the first project. I have agreements with anchor investors for a significant increase in investments once this happens,” he told the media outlet.
Production from Ukrainian private gas companies is declining, but gas demand is rising since Russia has destroyed more than 10 GW of Ukraine’s generating capacity. This will add 25–50% additional demand to the existing consumption of 20 billion cubic meters of gas, Forbes reported.
Restoring lost capacity will take four to five years and require $7-10 billion. During this period, electricity prices in the country will be at a premium, Mazepa said.
Who is Igor Mazepa?
In 2004, Mazepa established Concorde Capital, one of Ukraine’s leading investment company.
He owns Dobrobut (one of the largest private clinic chains in Ukraine), the Kryvyi Rih Cement enterprise which produces cement and building materials, and has invested in online retail, particularly MAKEUP, the online cosmetics and perfume outlet,
In addition, Mazepa, owns companies specializing in mining, oil and natural gas extraction, and has invested in the Energozberezhennia group of companies supplying thermal energy.
All of these assets are managed by his investment company Concorde Capital.
Mazepa was a suspect in a case involving land acquisition near the Kyiv Hydroelectric Power Station. On Jan. 19, 2024, the court imposed a pre-trial detention measure on Mazepa, with an alternative bail of Hr. 349 million ($9 million), Forbes Ukraine reported.
On Jan, 23 last year, the Kyiv Court of Appeal reduced the bail amount to Hr. 21 million ($504,000) but did not overturn the decision of the initial court. Mazepa was subsequently bailed.
Source: Kateryna Mykhailova