Scale Microgrids Secures Financing To Deliver Reliable Electricity And Clean Heat From HyAxiom Fuel Cells
RIDGEWOOD, N.J.–(BUSINESS WIRE)–Scale Microgrids, a vertically-integrated distributed energy company, has acquired a 9.6-megawatt combined heat and power (CHP) fuel cell project in Bridgeport, Connecticut. The project, which is paired with a thermal loop, was acquired pre-construction from NuPower, an Easton, CT-based developer and investor in sustainable energy projects. Investec and MUFG will provide debt financing and Foss & Co will provide tax equity for the project, which Scale will finance as well as build, own, and operate over its lifetime.
HyAxiom, Connecticut’s largest fuel cell manufacturer, will fabricate, install, and operate the fuel cells for the project. These fuel cells will convert natural gas into hydrogen through an electrochemical process, generating combustion-free electricity as well as waste heat which will be captured for use in a 1.6 mile-long thermal loop in Bridgeport’s South end.
“This project is a terrific opportunity to deploy innovative clean energy technology to drive economic, reliability and sustainability outcomes in Bridgeport,” said Julian Torres, Chief Investment Officer at Scale Microgrids. “We’re also proud to work with great in-state companies like NuPower and HyAxiom as we continue to expand our footprint in Connecticut more broadly.”
“HyAxiom is excited to work with Scale Microgrids and NuPower to deliver the very first multi-story fuel cell project of its kind in the US,” said David Alonso, Chief Commercial Officer at HyAxiom, Inc. “We are confident that this facility will serve as the model for many for projects to come and look forward to working closely with Scale Microgrids.”
Fred Petit, Co-Head of Energy and Infrastructure Finance North America at Investec said: “We are proud to support Scale Microgrids in this transformative project, which not only enhances local energy reliability but also underscores our commitment to advancing clean energy solutions that benefit communities and the environment.”
“Project Charter Oak is a huge step forward for us into cutting-edge technologies and microgrid systems,” said Bryen Alperin, Partner and Managing Director at Foss & Company. “This deal highlights our expertise in managing complex projects like fuel cells and thermal loops, and closing it quickly sets the stage for even more exciting opportunities.
Patrick Klein, senior originator and MUFG deal team lead, said: “MUFG is pleased to have worked with Scale Microgrids to take an important step forward for this innovative, important project for the City of Bridgeport. This transaction is another example of MUFG’s industry-leading global commitment to support clean energy and grid reliability.”
“This project has been in development for 10 years. We appreciate the long and continued support of the Mayor, City Council and our legislative delegation,” said Scott Guilmartin of NuPower.
The project will deliver multiple benefits to the local Bridgeport community and Connecticut more broadly. The thermal loop will supply heat and hot water for the University of Bridgeport, Approved Storage and Waste Hauling, and Bassick High School, reducing their operating costs and enabling them to cut their greenhouse gas emissions by a combined 8,000 tons per year. The reliability of the UI electricity grid will also benefit from the locally-produced baseload power.
Connecticut’s growing clean energy economy will also benefit from the project, which is expected to create roughly 100 jobs during its construction phase. A significant portion of the project contracting has been awarded to local MBE contractors. It also represents the largest U.S. project to date for HyAxiom, and it will fully utilize their South Windsor, CT-based manufacturing facility. Finally, it underscores Scale’s growing business in Connecticut, including its operations of the City of Bridgeport’s municipal microgrid and several battery energy storage system (BESS) projects under development across the state that will benefit schools and businesses.
The project may be expanded to service other locations in the city at a future date.
About Scale Microgrids
Scale is a vertically-integrated energy company that designs, builds, finances, owns, and operates distributed energy assets that deliver cheaper, cleaner, and more resilient power. Their team accelerates growth in distributed energy by providing financing to project developers, while also directly helping large energy-consuming customers take charge of their energy supply with microgrids that integrate solar, batteries, and other on-site energy assets. Learn more at www.scalemicrogrids.com.
About HyAxiom, Inc.
HyAxiom, Inc. is a leading global fuel cell and hydrogen solutions provider enabling reliable, cost-competitive and carbon-free energy sources for industrial and commercial uses. As a core technology provider, HyAxiom is a key pillar in the Doosan Group’s hydrogen vision. HyAxiom’s PureCell®, which is based on proprietary phosphoric acid fuel cell (PAFC) technology, is the only commercially operating stationary fuel cell system running solely on hydrogen. For more information, visit the HyAxiom website and follow us on LinkedIn.
About Investec
Investec Bank plc (‘IBP’) is the banking subsidiary of Investec plc. Investec plc is a FTSE-250 listed company which holds the majority of Investec Group’s non-Southern African businesses under a dual listed company structure. IBP partners with private, institutional and corporate clients, offering banking and investment services in the UK, Europe and US, Continental Europe, Channel Island, India, Switzerland and Ireland.
IBP also offers wealth management services through its strategic partnership with Rathbones Group, the UK’s largest discretionary wealth manager. IBP has operated in the UK since 1992.
As part of the Investec Group, IBP is a purpose-driven organisation, dedicated to its core purpose of creating enduring worth. This means we will always strive to create long-term value for all stakeholders and contribute meaningfully to people, communities and the planet.
Further information can be found at www.investec.com.
About Foss & Company
Founded in 1983, Foss & Company is a national tax equity investor and fund sponsor that has deployed over $9 billion in tax equity on behalf of insurance, banking, and other large corporate clients into historic rehabilitation projects, renewable energy and advanced energy production facilities. Foss & Company is a full-service advisor with proven expertise in helping our partners navigate the world of tax equity investments. For more information about Foss & Company and its innovative transferable tax credit opportunities, please visit www.FossandCo.com.
About NuPower, LLC
NuPower, LLC is a sustainable energy developer based in Connecticut. The company focuses on district energy, combined heat and power and battery storage projects. Significant projects include the Plainfield Biomass Project, Cherry Street Bridgeport CHP Project and the Bridgeport District Energy project. For more information, visit www.Nupowerllc.net.
About MUFG and MUFG Americas
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to be “the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.
MUFG’s Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit www.mufgamericas.com.
Contacts
Media Contact:
Nicole Green, Scale Microgrids
