- Supporting the Energy Transition, the Fuel Cell Portfolio Will Provide Cleaner, Reliable, and Baseload Power for Companies in California, New York, New Jersey, Massachusetts, Connecticut and Maryland
NEW YORK–Daroga Power, an investor and developer of distributed generation energy assets, today announced that they have closed an infrastructure portfolio fund to deploy 32.85 MW of Bloom Energy solid oxide fuel cells (“SOFC”).
Approximately 6 MW of fuel cells in the portfolio are already operational. The additional fuel cells will be deployed through the end of 2022 and are committed to 17 market-leading and Fortune 500 commercial and industrial off-takers under long-term energy services agreements. Once completed, the fuel cells will produce reliable, cleaner, baseload energy at customer sites in California, New York, New Jersey, Massachusetts, Connecticut, and Maryland.
“We believe in the power of distributed generation to mitigate the risks that companies face from extreme weather, brownouts and blackouts, and unknown energy costs. Fuel cells enable companies to reduce their environmental footprint, while being able to budget for and reduce their energy spend,” said Ory Moussaieff, co-founder of Daroga Power.
The fund was developed through a private joint venture “RAD Energy Solutions”, a partnership between Daroga Power and an affiliate of Related Companies. The sponsor and tax equity were privately raised with a sponsor contribution of $21.5 million. Bank of America has committed up to $68 million of tax equity. Silicon Valley Bank provided the debt financing of approximately $135 million. Further financial details were not disclosed.
“Scaling capital deployment for fuel cell technology, including Bloom’s SOFC as well as many other innovative decarbonization technologies, is an important part of BofA’s $1.5 trillion 2030 Sustainable Finance commitment,” said Karen Fang, Global Head of Sustainable Finance at Bank of America.
“BofA is very pleased to have closed this solid oxide fuel cell financing in partnership with Bloom Energy and Daroga Power. We believe Bloom’s SOFC is an important technology in reducing emissions from existing forms of energy,” added Omer Farooq, Managing Director, Global Sustainable Finance Group – Asset Finance, Bank of America.
“We are excited to work with Daroga Power to support the build out of a resilient, reliable, and efficient portfolio of distributed fuel cell projects, and we are proud to expand our relationship with Bloom Energy,” said Bret Turner, Market Manager of Project Finance at Silicon Valley Bank. “Our project finance team is dedicated to accelerating the energy transition by providing market liquidity and financing for innovative projects and technologies.”
Bloom Energy will serve as the provider of the fuel cells for the portfolio and will maintain the equipment under a long-term maintenance and operation agreement. Daroga Power, as managing member of RAD Energy Solutions, will oversee operation and financial performance of the fuel cell assets.
“Bloom Energy is excited to partner with RAD, Silicon Valley Bank, and Bank of America to further scale deployment of our solid oxide fuel cell platform. A path to net-zero carbon emissions must include partnerships and collaboration with organizations focused on the advancement of a low carbon economy,” said Scott Reynolds, global head of structured finance and corporate development, Bloom Energy. “We’re particularly pleased to add Bank of America as a new source of tax equity, and to continue our track record of success with RAD and Silicon Valley Bank.”
Bloom Energy’s solid oxide fuel cell systems are advanced distributed power generation systems that convert fuel to electricity without combustion to deliver reliable, resilient, cleaner, and affordable baseload power. The benefits of deploying fuel cells for commercial and industrial power needs include reduced greenhouse gas emissions, virtually no harmful smog-forming particulate matter, high reliability, flexibility in installation and operation, and improved environmental quality.
In the deal, RAD Energy Solutions was represented by Norton Rose Fulbright & Fucci Law and Bank of America was represented by Millbank.
“With this structured deal, we are nearly tripling our fuel cell portfolio. Our reputation for strong management means we are able to bring respected partners to the table and be creative in how we privately structure these funds,” said David Matt, co-founder of Daroga Power.
This is the second fuel cell portfolio announcement for Daroga Power in less than one year. In December 2020, the company announced a 12 MW fuel cell portfolio valued with an enterprise value of $103 million. That portfolio of 48 Bloom Energy fuel cells is located throughout New York and is reducing consumers’ electricity costs through Daroga Power’s energy platform goCDG.com.
About Daroga Power
Launched in 2015, Daroga Power is a New York-based clean energy infrastructure firm focused on the development and disciplined management of strategically innovative and socially responsible energy projects throughout North America. Applying the discipline of both a strong financial and fast-track development background, Daroga Power is one of the few companies able to privately structure finance deals to acquire and manage distributed generation portfolios. With their successful track record and deep background, Daroga Power is rapidly becoming a leader in the shift to distributed generation that is reshaping the relationship between local utilities and their customers.
Learn more at www.darogapower.com
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks