FOLSOM, NJ – SJI (NYSE: SJI) remains committed to investments that advance the clean energy and decarbonization goals of New Jersey and our region. Catamaran Renewables (Catamaran), a joint venture between SJI subsidiary Marina Energy and renewable industry leader Captona announced today the acquisition of a third fuel cell project in Bronx, New York.
The partners acquired the fuel cell from NineDot Energy, an experienced renewable development company based in the NYU Urban Future Lab cleantech incubator in Brooklyn, NY.
The Fuel Cell Project comprises 5.0 MW of installed capacity and is projected to achieve commercial operation in Q4 2021. Similar to the two fuel cells in Staten Island that we brought on-line in 2020, this investment qualifies under New York’s Value of Distributed Energy Resources (VDER) program. With roughly 75% of fuel cell revenues fixed under VDER and an anticipated 95% availability rate, these projects produce steady, low-risk cash flows and unlevered returns in line with our hurdle rate for non-utility investments.
Marina will own 92% of the project and accordingly, receive 92% of the ITC, cash flows and net income associated with the project. The project is supported by long-term offtake agreements with two creditworthy anchor customers. This project will support a substantial portion of our 2021 ITC goals.
“Catamaran’s strategic energy investments in fuel cell technology further SJI’s strategy of pursuing decarbonization initiatives to bring our communities the cleanest energy supply we can deliver,” said Mike Renna, SJI president and chief executive officer. “This is another step towards SJI’s commitment to growing and innovating its sustainable energy assets to build a clean future and deliver carbon-neutral energy by 2040.”
Catamaran brings more than 1.3 GW of operational experience across all types of renewable energy and has financed more than $1 billion in renewable energy transactions. For more information about SJI and its subsidiaries visit https://www.sjindustries.com/cleanenergy.