Daroga Power has raised funds to deploy 32.85 MW of Bloom Energy solid oxide fuel cells (SOFC).
Approximately 6 MW of fuel cells are presently active in the portfolio. The extra fuel cells will be implemented through 2022 and are committed to 17 market-leading and Fortune 500 commercial and industrial offtakers through long-term energy services agreements. Once completed, the fuel cells will provide customers in California, New York, New Jersey, Massachusetts, Connecticut, and Maryland with reliable, greener baseload energy.
“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. Fuelcells enable companies to reduce their environmental footprint, while being able to budget for and reduce their energy spend,” said Ory Moussaieff, co-founder of Daroga Power.
The fund was established through a private joint venture called “RAD Energy Solutions,” a collaboration between Daroga Power and a Related Companies affiliate. Private capital was raised for the sponsor and tax equity, with the sponsor contributing $21.5 million. Bank of America has made a tax equity commitment of up to $68 million. Silicon Valley Bank supplied around $135 million in debt funding. Additional financial information was not given.
“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,” said Karen Fang, Global Head of Sustainable Finance at 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,” added Omer Farooq, Managing Director, Global Sustainable Finance Group – Asset Finance, Bank of America.
“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,” said Bret Turner, Market Manager of Project Finance at Silicon Valley Bank. “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 supply the portfolio’s fuel cells and will maintain the equipment as part of a long-term maintenance and operation agreement. Daroga Power, as managing member of RAD Energy Solutions, will be responsible for the fuel cell assets’ operation and financial performance.
“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,” said Scott Reynolds, global head of structured finance and corporate development, Bloom Energy. “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 innovative distributed generation technologies that convert fuel to electricity without combustion to provide reliable, resilient, cleaner, and affordable baseload power. Reduced greenhouse gas emissions, nearly no dangerous smog-forming particulate matter, high dependability, installation and operation flexibility, and enhanced environmental quality are just some of the benefits of deploying fuel cells for commercial and industrial power demands.
“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,” said David Matt, co-founder of Daroga Power.
This is Daroga Power’s second fuel cell portfolio announcement in less than a year. In December 2020, the business announced the acquisition of a 12 MW fuel cell portfolio valued at $103 million. This portfolio of 48 Bloom Energy fuel cells is distributed around New York and is saving clients money on their electricity bills via Daroga Power’s energy platform goCDG.com.