At a time when construction financing is a top concern, one investment firm has created a new line of credit for renewable energy projects. Known as "green finance," this type of investing provides a link between the financial industry, environmental protection and economic progress.
Generate Capital, a sustainable infrastructure company, has launched a credit business to provide financing solutions to technology companies and project developers working on sustainable infrastructure projects. The company recently made headlines when its co-founder Jigar Shah stepped down to serve as head of the Department of Energy's Loan Programs Office as part of President Joe Biden's administration.
With financing capabilities, a capitalized balance sheet and an operating platform for distributed assets, Generate can provide project developers and technology companies a range of financial and operational solutions. The new credit business will target new loans that expand the market for the deployment of sustainable infrastructure.
It's an important move for Generate, which finances, builds, owns and operates sustainable infrastructure has established Generate as a “one-stop-shop” for sustainable infrastructure pioneers. Generate’s core markets include renewable power, lighting, HVAC systems, geothermal, biomass, building automation, heat pumps, smart meters, wastewater, food waste management and sustainable agriculture, as well as electric, hydrogen and autonomous vehicles. Generate has made more than $600 million in similar types of clean energy loans since its founding.
“Credit is a critical part of the financial ecosystem for clean energy and sustainable infrastructure solutions, and we are thrilled to expand access to this important tool that we’ve used to support our partners since inception,” says Scott Jacobs, CEO and co-founder of Generate.
Generate has been involved in electric bus leasing, renewable energy development lending and fleet financing for electric and hydrogen mobility. The company's partners asked Generate to take on additional roles in financing, developing and deploying solutions to address sustainability issues, Jacobs says.
Alfred Griffin, founding president of the NY Green Bank, has joined Generate to lead the new Generate Credit division.
Earlier this year, the Wall Street Journal reported that Generate Capital, Trilantic North America and two other investment firms are investing more than $600 million in Intersect Power, which develops clean energy solutions.
A year ago, Generate Capital secured more than $1 billion in funding from major funds around the globe including AustralianSuper, QIC, Railways Pension and AP2 of Sweden.