Hydrogen production – Intersect Power announces $750M growth equity investment from TPG rise climate, CAI investments & Trilantic Energy Partners North America.
Intersect Power, LLC, (“Intersect Power” or the “Company”) announced a $750 million growth equity investment led by TPG Rise Climate, the dedicated climate investing strategy of TPG’s global impact investing platform TPG Rise, with additional participation from existing investors, Climate Adaptive Infrastructure, LLC. (“CAI”), and Trilantic Energy Partners North America (“Trilantic”).
This strategic partnership and investment will accelerate the achievement of Intersect Power’s continued progress in implementing its vision to enable pathways between clean electricity and the broader economy.
This growth equity investment will provide significant capital to scale Intersect Power’s business including the Company’s renewable energy portfolio and new product pipeline in the rapidly expanding clean energy sector.
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This investment supports the Company’s differentiated focus on shorter tenor offtake contracts combined with large-scale battery storage and new products, like green hydrogen, allowing it to benefit from the superior risk and return profile created by rising prices for global energy and clean commodities.
Sheldon Kimber, Intersect Power CEO, said:
Our partnership with TPG Rise Climate, CAI and Trilantic further fuels our collective pursuit to accelerate the deep decarbonization of our economy, build American energy security, and deploy the billions of dollars of hard assets required to solve the climate crisis.
“The bridge between vision and progress is achieved by the continued buildout of clean energy solutions and our team is energized, now more than ever, to tackle climate change with gigawatts of real assets in the ground.”
With the US clean energy market’s recent supply chain disruptions, increasing capital costs and regulatory uncertainties, this investment further reinforces the durability of Intersect Power’s core business.
The Company’s focus on shorter tenor contracts, differentiated financing structures and domestic supply chains has put Intersect Power in a unique position to continue to reliably deliver the most scalable and innovative low-carbon solutions for customers in wholesale and retail energy markets, including a growing number of emerging clean commodities customers, such as green hydrogen and e-fuels.
Ed Beckley, Partner at TPG and senior member of its climate investing team, said:
Intersect’s proven delivery of large, scalable clean energy projects and differentiated business model positions the Company to lead the way into new markets and clean energy products, as our economy continues to decarbonize.
“Energy demand will continue to increase as we accelerate the electrification of our economy. We are thrilled to support the Company’s work in delivering innovative clean energy solutions to the grid and the industrial corners of our economy,” added Steven Mandel, Business Unit Partner in TPG Rise.
As part of the investment, Beckley, Mandel, and Maryanne Hancock, CEO of TPG’s Y Analytics, will represent TPG Rise Climate on Intersect Power’s board of directors, alongside Bill Green of CAI and Glenn Jacobson of Greenbelt Capital Partners.
Bill Green, Founder and Managing Partner at Climate Adaptive Infrastructure, said:
We are proud to continue our support of Intersect Power and join the team in celebrating yet another impressive fundraising milestone for the Company.
“As an investor and outspoken advocate of the team’s work since Intersect’s inception, we’ve been consistently reaffirmed in our support by their proven track record.”
“From shorter tenor contracts to unbundling RECs to American module procurement, the team has consistently been ahead of the market in accelerating the adoption and impact of clean energy products that are the solution to the climate crisis.”
This investment will support Intersect Power’s accelerated entry into new markets and technologies, including nearly 1 GW of green hydrogen production, and the continued development of its mid to late stage portfolio totaling 8.5+ GWp and 8+ GWh throughout the United States.
The Company currently has 2.2 GWp of solar PV and 1.4 GWh of co-located storage currently under construction that will be in operation by 2023.
BofA Securities served as financial advisor to Intersect Power in relation to the transaction and Orrick, Herrington & Sutcliffe LLP acted as legal counsel. PJT Partners served as financial advisor to TPG in relation to the transaction and Kirkland & Ellis acted as legal counsel.
Intersect Power is a clean energy company bringing innovative and scalable low-carbon solutions to its customers in retail and wholesale energy markets.
The Company develops some of the world’s largest clean energy resources providing low-carbon electricity, fuels, and related products to customers across North America. Intersect Power has an 8.5+ GWp and 8+ GWh mid to late-stage pipeline that includes a base portfolio of 2.2 GWp of solar PV and 1.4 GWh of co-located storage that will be in operation by 2023.
The Intersect team is also planning nearly 1 GW of green hydrogen production. To learn more about Intersect Power, visit www.intersectpower.com.
TPG Rise Climate is the dedicated climate investing strategy of TPG’s global impact investing platform TPG Rise. TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals, the strategic relationships developed across TPG’s existing portfolio of climate-focused companies, and a global network of executives and advisors.
The fund takes a broad-based sector approach to investment types, from growth equity to value-added infrastructure, and focuses on climate solutions in the following thematic areas: clean electrons, clean molecules and materials, and negative emissions.
Jim Coulter, TPG Founding Partner and Executive Chairman, serves as Managing Partner of TPG Rise Climate. Former U.S. Treasury Secretary Hank Paulson serves as TPG Rise Climate’s Executive Chairman. For more information, please visit www.therisefund.com/tpgriseclimate.
About Climate Adaptive Infrastructure
Climate Adaptive Infrastructure, LLC (“CAI”) is an infrastructure investment firm specializing in low-carbon real assets in the energy, water and transport sectors. The firm seeks investments across core infrastructure assets that improve the sustainability and quality of life for the world’s large and growing population.
CAI selects, finances, constructs and manages its investments using climate screens and metrics designed to enhance investment returns and cut carbon emissions.
About Trilantic North America / Greenbelt Capital Partners
Trilantic Capital Management L.P. (“Trilantic North America”) is a growth-focused middle market private equity firm focused on control and significant minority investments in North America. Trilantic North America focuses on investments in the business services and consumer sectors.
Greenbelt Capital Partners is a growth-focused middle-market private equity firm focused on control and significant minority investments ranging from late-stage growth equity to private equity to infrastructure development across the energy sector.
The Greenbelt investment team recently spun out of Trilantic North America and continues to serve as advisors to Trilantic North America and its managed funds.
The senior team at Greenbelt has committed approximately $4.6 billion of equity capital to multiple portfolio companies and consummated more than $58 billion of M&A and financings in over 210 transactions across the portfolio. For more information, visit www.greenbeltcapital.com
Highlights:
- Investment will provide significant capital to accelerate the build-out of Intersect Power’s clean energy platform, from today’s 2.4 GW portfolio to 8 GW+ of renewable generation, storage, and hydrogen production
- TPG Rise Climate joins existing investments from CAI, Trilantic, and Intersect Power management to enable new pathways between clean electricity and the broader economy
- Growth equity investment signals a commitment to the new products and scalability that are the focus of Intersect Power’s business
Intersect Power Announces $750M Growth Equity Investment from TPG Rise Climate, CAI Investments & Trilantic Energy Partners North America, June 28, 2022
