project-finance is a method of funding large-scale infrastructure and industrial projects. It involves a special purpose vehicle (SPV) that owns the project, with funding typically secured by the project's projected future cash flows, rather than the creditworthiness of its sponsors.

Key Characteristics:

• Non-Recourse/Limited Recourse: Loans are primarily repaid from the project's revenues, with limited recourse to the project sponsors if the project underperforms.
• Risk Allocation: A complex structure designed to meticulously allocate various risks (e.g., construction, operational, fuel-price-exposure, market) among multiple parties (lenders, sponsors, contractors, off-takers).
• Critical for Development: Essential for mobilizing large capital investments in energy infrastructure, such as the 371 MW [[Wärtsilä]]-[[Origem Energia]] deal in brazil.
• Bankability: Requires a credible offtake-structure, de-risked fuel-supply-chain (like [[Origem Energia]]'s gas-to-wire model), and regulatory stability (e.g., post-aneel reforms) to attract lenders like BNDES or international commercial banks.