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BFD Expert Voices - Climate Deals

BFD Expert Voices

CleanCapital is backing Alaska-based solar developer Renewable IPP with a commitment to fund one of the state's largest solar projects to date, Megan reports.

Why it matters: CleanCapital is moving upstream from its typical pre-construction, post-development solar projects for a better chance at retaining owner-operator level returns. 

What's happening: CleanCapital, a mid-market renewables project financing group, has invested an undisclosed amount in Renewable IPP in addition to its commitment to finance an 8.5-MW solar project in Alaska.

Currently, Alaska's biggest solar plant generates roughly 1.2 MW of power, making the Renewable IPP project by far the largest in the state.

Matanuska Electric Association, a local utility, has committed to purchasing the new plant's power once completed. Construction is set to begin in 2023.

CleanCapital will remain an owner-operator in the project throughout its life cycle, chief commercial officer Julia Bell tells Megan.

The financial terms of the deal were not disclosed.

The intrigue: Alaska isn't exactly the first market that comes to mind for solar-project construction, but electrifying the Last Frontier is key to national net-zero goals.

What we're watching: Bell says the Inflation Reduction Act has reinvigorated the solar-project-financing landscape after a volatile summer of supply chain issues.  

1 big thing: CleanCapital's Alaska solar play

Illustration of a solar panel with the flag of Alaska overlaid.

Zeti, a U.K.-based fintech startup with an EV angle, raised $2.5 million in seed financing, the company tells Megan.

Why it's the BFD: Power purchase agreements underpinned growth in solar and wind projects for decades, and Zeti wants to do the same for fleet electrification with its financing software. 

Details: Powerhouse Ventures led the round — which includes a convertible debt component — but does not gain a board seat as part of the deal.

The deal closed at the end of July after four months of fielding proactive proposals from interested investors, CEO Dan Saunders says.

How it works: Zeti has deployed roughly $17 million to date, Saunders says, with another $15 million expected to come online within the next quarter.

Its software matches funds from financial institutions to zero-emissions vehicle manufacturers that then supply fleet operators with the vehicles.

Financial institutions pay per mile for vehicle investments or per kilowatt-hour for charging infrastructure purchases, an asset Zeti plans to add in the future.

Of note: A small component of the seed deal hasn't yet closed, Saunders says, though the company plans to raise its Series A at the end of the year.

2. The BFD: EV fleet financing startup raises $2.5M

Illustration of a hundred dollar bill stylized as an electric symbol.

🤖 Robotaxis roll onto the Strip: Lyft is adding a new fleet of electric, autonomous vehicles to its ride-hailing network in Las Vegas, bringing it one step closer to offering a full robotaxi service, our What's Next colleague Joann Muller reports.

Riders can unlock the doors via the Lyft app and start a ride using an intuitive passenger display in the rear seat. If needed, they can also use the screen to contact remote agents. For now, two vehicle operators will be present in the front seat — but the service is set to become fully driverless in 2023.

🍝 Won't somebody please think of Arthur Avenue: Extreme heat and drought is threatening tomato crops in California — and, by extension, tomato sauces. 

“We desperately need rain,” Mike Montna, head of the California Tomato Growers Association, told Bloomberg. “We are getting to a point where we don’t have inventory left to keep fulfilling the market demand.”

Additional locations considered for the headline: The North End, Federal Hill, the Carbone kitchen.

⚡ "The EV charger that drops from the sky": Hopefully not too quickly. The team at E&E News took a look at pole-mounted EV chargers being deployed as part of a pilot program by Seattle City Light.

The idea is to help apartment dwellers and other garageless folks more easily charge their EVs. The charger described in the piece moves down a utility pole when requested by a driver via app.

🌽 The wait is over: "Hyosung TNC has succeeded in extracting spandex from corn," the South Korean company announced in a press release.

The corn-based athleisure material "can reduce water use by 39% and carbon dioxide emissions by 23%, compared to conventional spandex products." Lululemon, you're on notice.

3. 🌡️ Temperature check

Illustration of an earth in space covered in red and blue meteorological color lines.

• On.Energy, a Miami-based energy storage developer, closed $100m in conditional project financing from Sustainable Development Capital Energy Efficiency Income Trust, a U.K.-listed company investing exclusively in behind-the-meter energy projects. https://axios.link/3dC31G4 

• Denham Capital’s Energy Resources spun out Trace Capital Management, an energy-focused investment adviser, with more than $1.4b of invested and callable capital across two active funds. https://axios.link/3C99J0H

• TA Associates invested an undisclosed amount in Technosylva, a La Jolla, California-based wildfire simulation modeling startup. https://axios.link/3AnW0BI

• Sunnova Energy intends to offer $425m in convertible senior notes due 2028 in a private placement to qualified institutional buyers with the option to purchase up to an additional $75m. https://axios.link/3Aoj9UL

• Bloom Energy, the San Jose-based fuel cell manufacturer, is selling 13 million shares of its Class A common stock via underwritten public offering. J.P. Morgan, Morgan Stanley and BofA Securities are acting as joint book-running managers for the proposed offering. https://axios.link/3PqQBhQ

• Pivot Energy has acquired SGC Power, a Maryland-based community solar developer. Pivot is owned by ECP. https://axios.link/3QRrWEd 

• Apex Clean Energy announced that Bank of America is executing on its tax equity financing commitment for Apex’s 224-MW Great Pathfinder Wind project in Iowa. The project is part of a long-term PPA with Meta. https://axios.link/3QuqHuD 

• U.S. Steel, Equinor US Holdings and Shell US Gas & Power have entered into a non-exclusive cooperation agreement to develop a “clean energy hub” in the Ohio, Pennsylvania, West Virginia region focused on CCUS and hydrogen. https://axios.link/3JW053k 

• SMT Energy, a Boulder-based renewable energy and energy storage developer, announced an agreement with SUSI Partners AG, a Swiss sustainable energy infrastructure fund manager, to jointly develop, own and operate battery energy storage systems in the U.S. https://axios.link/3JVP1TZ 

• Innergex Renewable Energy, a Canadian energy developer and operator, has signed a 30-year, 320-MW PPA with PacifiCorp, an electric power company owned by Berkshire Hathaway, to supply electricity from the Boswell Springs wind project in eastern Wyoming. The project is scheduled to begin commercial operation in Q4 2024. https://axios.link/3SS25O8 

• CBRE Investment Management partnered with Altus Power, a clean electrification company, on the development and installation of solar power generation, battery storage and electric-vehicle charging systems within its logistics portfolio. https://axios.link/3JTva7T

• LG Chem and ADM launched two joint ventures to produce lactic acid and polylactic acid for plant-based products, including bioplastics. The joint ventures plan to annually produce 150,000 tons of high-purity corn-based lactic acid and about 75,000 tons of polylactic acid at production facilities in Decatur, Illinois. https://axios.link/3bVL0Ce 

• Algoma Central has entered into a joint venture agreement with Furetank to build four, dual-fuel ice-class product tankers. The ships will run on LNG/LBG, or gasoil, but also include battery hybrid technology. https://axios.link/3w8tQYX 

4. Hot deals

• Faraday Future Intelligent Electric, a California-based EV company, promoted Mathias Hofmann to head of manufacturing operations on an interim basis. Hofmann replaces Matt Tall, who is departing the company. Hofman is also the company's head of global supply. https://axios.link/3QtEC4n

• Olea Edge Analytics, an Austin-based edge-computing provider for the water utility industry, has hired Jennifer Crow as CFO, Melissa Anderson as vice president of marketing, and Chris Wilke as vice president of operations. https://axios.link/3C7JDem 

5. It's personnel

'🧗🏻‍♀️ Tis the season for evening rock climbing sessions. Megan and her partner got a few laps in last night before the sun went down.

📺 The "Better Call Saul" series finale: 10/10. If you have thoughts, send them Alan's way.

Thanks for reading Climate Deals! Please share with your friends, family and Alaska residents.

August 16, 2022

1 big thing: CleanCapital's Alaska solar play