NY Green Deals to Stimulate $800M in Clean Energy Investments

ALBANY, NY—New York State officials announced today the first seven transactions of the NY Green Bank that they say will fuel more than $800 million in clean energy investments statewide.

Gov. Andrew Cuomo says the projects, which are traditionally difficult for the private sector to finance, were made possible by NY Green Bank's participation and are expected to result in an annual reduction of 575,000 tons of carbon dioxide in the state.

The parties to the seven transactions, which have been agreed to in principle, include: Ameresco, Bank of America Merrill Lynch, BQ Energy, Citi, Deutsche Bank, First Eastern Investment Group, First Niagara Bank, GreenCity Power, M&T Bank, Renewable Funding, Sustainable Development Capital and Tulum Management. Terms are still being finalized. NY Green Bank is working to close the transactions by year-end, state officials note.

"By leveraging the financial capacity of the private sector with an eye toward clean energy projects, NY Green Bank is creating a cleaner state for all New Yorkers," Gov. Cuomo says. "The state's contribution to these projects will support jobs and economic activity in our communities, and it is helping to grow the market for clean technology in New York by paving the way for more frequent and accessible funding going forward."

Most of the private sector lenders involved in the initial transactions with the NY Green Bank are looking to provide capital for clean energy-related projects and equipment. For example, the NY Green Bank and Tulum Management are working toward funding construction and permanent debt as the senior lender to GreenCity Power, LLC, a firm that is seeking to build and operate small-scale cogeneration projects in New York City's largest commercial buildings. NY Green Bank and Tulum would fund the firm's first five projects.

Another deal involves First Niagara Bank and M&T Bank, who are in advanced negotiations to provide financing for BQ Energy's SteelSun, LLC's 4-megawatt mounted solar photovoltaic energy project on the former Bethlehem Steel mill site in Lackawanna, NY. The NY Green Bank plans to provide certain guarantees to the bank lenders for construction and tax equity financing. Additional transactions are expected to be announced in the coming months, state officials say.

Richard L. Kauffman, chairman of energy and finance for New York State, says of the first NY Green Bank deals, "These transactions demonstrate NY Green Bank is working exactly how it is supposed to, through collaboration with the private sector and addressing the very issues that are preventing them from fully engaging in the clean energy marketplace. Each of these arrangements proves the private sector is ready to engage in public-private partnerships to drive a significant increase in New York's clean energy economy, benefitting all New Yorkers. Today's announcement cements New York's strategy to transition to a more environmentally and economically sustainable energy infrastructure."