Project financing is a way for companies to fund big projects by using the project's cash flow instead of their own. It involves creating a special purpose vehicle (SPV) to manage the financing. Project financing is different from asset securitization, which involves financial assets like loans. It's commonly used for projects like power plants, toll roads, and industrial plants. Before the 1970s, project financing was mainly for natural resource ventures, but now it's used in many industries, with power being the biggest. Companies in energy-related industries and countries privatizing state-owned companies often use project financing to get new capital.