Daroga Power closes $230 million infrastructure fund for the deployment of 32.85 MW of bloom energy fuel cells.
Daroga Power, an investor and developer of distributed generation energy assets, announced that they have closed an infrastructure portfolio fund to deploy 32.85 MW of Bloom Energy solid oxide fuel cells (“SOFC”).
Daroga Power’s latest infrastructure portfolio fund will deploy 32.85 MW of Bloom Energy solid oxide fuel cells (Photo: Business Wire)
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.
Ory Moussaieff, co-founder of Daroga Power.
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,”
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.
Karen Fang, Global Head of Sustainable Finance at Bank of America.
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.
Omer Farooq, Managing Director, Global Sustainable Finance Group – Asset Finance, 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,”
Bret Turner, Market Manager of Project Finance at Silicon Valley Bank.
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.
“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.
Scott Reynolds, global head of structured finance and corporate development, Bloom Energy.
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,”
“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.
David Matt, co-founder of Daroga Power.
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,”
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.
Daroga Power Closes $230 Million Infrastructure Fund for the Deployment of 32.85 MW of Bloom Energy Fuel Cells, New York, August 10, 2021
