Apex Cogen has considerable experience in designing beneficial investment structures to maximize tax benefits, defer income, obtain "off balance sheet" funding, and "cash out" existing energy investments such as boilers, air compressors, water treatment, and other utilities through lease-backs, buyouts, and privatization.

The use of off-shore corporate structures and banking in tax-treaty jurisdictions can enhance value for project participants, and provide an additional layer of security for invested capital in countries with political risk.

Save funds for your core business. Through innovative financing structures, a public or private owner of existing energy assets can raise (or conserve) funds for its core business—where it may realize greater returns than from a utility operation. The significant equipment component of typical cogeneration facilities lends itself well to equipment leasing. Equipment leasing may be provided by equipment vendors or third capital groups, and may cover 100% of the equipment cost.

Cogeneration plant projects may qualify for accelerated depreciation ("Capital Cost Allowance") under the Canadian tax code if they meet certain defined heat rate (efficiency) hurdles during operation. Local and federal jurisdictions may offer location-based credits or special incentives to encourage distributed generation in a specific area. If a separate legal entity is established to own a cogeneration facility, it is important to consider the owner's tax positions so that benefits can flow through for maximum advantage. Apex Cogen works closely with legal and accounting advisers to help structure cogeneration schemes for maximum advantage.

Structuring off-shore projects. International projects can offer special challenges—and rewards. The use of off-shore corporate structures and banking in tax-treaty jurisdictions can enhance value for project participants, and provide an additional layer of security for invested capital in countries with political risk. Apex Cogen's Principals and Associates have considerable experience in structuring international investments in power plants and other energy facilities in a number of countries. We offer confidential and private advice in conjunction with special consultants and strategic alliance partners. Our advice considers the special technical, financial, legal, tax, risks, insurance, and accounting considerations of any international deal, and can maximize benefits to the participants.