energyRe Completes $1.2 Billion Financing to Accelerate U.S. Clean Energy Transition
On December 5, 2023, energyRe announced the completion of a $1.2 billion capital raise to support the expansion of its portfolio of large-scale renewable energy projects. Investors include Glentra Capital, Novo Holdings, and Danish pension fund PKA, and an agreement was reached with Elia Group, which will acquire an equity stake in energyRe's subsidiary energyRe Giga.
HOUSTON-- (BUSINESS WIRE)-- energyRe, an independent U.S. clean energy developer, announced on December 5, 2023, that it has completed a $1.2 billion capital raise to support the expansion of its portfolio of large-scale renewable energy projects spanning utility-scale transmission and storage, onshore wind and solar, and offshore wind. energyRe will use these strategic investments to advance its mission of decarbonizing American cities with abundant, affordable clean power and a modernized, interconnected grid.
Jeff Blau, Chairman and Founding Partner of energyRe, said: "energyRe's world-class portfolio of renewable energy projects and team have earned the trust of institutional investors and are better positioned than ever to advance America's energy transition. We look forward to leveraging our experience and expertise to deliver reliable clean power and drive a sustainable, carbon-free future for the United States."
Miguel Prado, Chief Executive Officer of energyRe, said: "energyRe is at the forefront of the U.S. energy transition, committed to delivering the necessary renewable energy infrastructure to meet our urgent climate and sustainability goals. We are focused on decarbonizing American cities and hard-to-abate energy load centers through a state-of-the-art grid that will unlock new sources of clean energy across the country. These investments, along with the strategic synergies with new and existing partners, will support energyRe's robust development pipeline and drive further innovation and expansion of our portfolio. This is a clear commitment from leading institutional investors to energyRe's mission, growth, and momentum. We thank our partners and look forward to working together to meet America's clean energy needs."
The announced financing includes committed capital investments in energyRe LLC from Glentra Capital and its co-investors Novo Holdings and Danish pension fund PKA. Glentra will support the energyRe team in scaling its development pipeline and achieving its ambitious growth plans, leveraging its track record of developing and constructing renewable energy assets in the U.S. Additionally, energyRe has entered into a definitive agreement with Elia Group, which will acquire an equity stake in energyRe's subsidiary, energyRe Giga. The European transmission expert will bring to the partnership its full expertise and experience in the development, construction, operation, and maintenance of offshore transmission infrastructure, including HVDC technology, transmission planning, and congestion management. The capital package also includes a committed corporate debt facility arranged by Santander and Deutsche Bank.
energyRe's diversified portfolio of renewable assets includes a development pipeline spanning 17 states, encompassing over 500 miles of high-voltage direct current (HVDC) transmission lines, 10.5 gigawatts of solar, wind, and storage projects, and more than 155 megawatts of distributed generation projects.
Catherine Vandenborre, Interim Chief Executive Officer of Elia Group, said: "With this agreement, Elia Group (through WindGrid USA) enters the U.S. market with a proven partner with a solid project portfolio. The collaboration with energyRe Giga is part of Elia Group's growth strategy in Europe and the U.S., as the group focuses on expanding its international activities and strengthening the development of sustainable energy solutions. This partnership marks a strategic step for Elia Group towards becoming an internationally recognized expert in electricity transmission."
Henrik Tordrup, Managing Partner of Glentra, said: "As a value-add investor in the energy transition, Glentra is pleased to co-invest in energyRe with like-minded investors. We have followed the company for several years and are very positive about their strategy and management team. As they deliver on their unique project pipeline and provide large-scale decarbonization to hard-to-abate regions in the U.S., the company is set for a valuable growth journey."
Co-investors Novo Holdings and PKA are equally pleased to become shareholders of energyRe:
Morten Beck Jorgensen, Managing Partner of Capital Investments at Novo Holdings, said: "We are pleased to become a shareholder of energyRe, a company that aligns perfectly with Novo Holdings' ambition to accelerate the green transition and our purpose of improving human health and the sustainability of society and the planet."
Michael Nellemann Pedersen, Chief Investment Officer of PKA, said: "Together with other professional partners, PKA is pleased to become a shareholder of energyRe. We consider energyRe an important part of further expanding the transition to renewable energy sources and a natural addition to our energy infrastructure portfolio."
energyRe is advancing several nationally leading renewable energy projects across the U.S. energyRe is a partner in Clean Path NY, a public-private project to develop 3,800 megawatts of new wind and solar generation capacity, along with a 175-mile, 1,300-megawatt underground HVDC transmission line. Clean Path NY is critical to advancing New York State's Climate Leadership and Community Protection Act, which requires a zero-emission electricity sector by 2040, 70% renewable electricity generation by 2030, and economy-wide carbon neutrality. Once operational, Clean Path NY will deliver more than 7.5 million megawatt-hours of emission-free electricity annually and reduce fossil fuel generation in New York State by an average of 22% per year. Clean Path NY exemplifies energyRe's transmission-led generation approach, delivering clean power and much-needed transmission capacity simultaneously—alleviating growing grid congestion, lowering system costs, enhancing grid resilience, and enabling more renewable energy to reach cities and communities that currently rely on fossil fuels.
energyRe is a development partner in the SOO Green HVDC Link, a first-of-its-kind 350-mile interregional transmission line that will connect the Midwest (MISO) and East (PJM) electricity markets, capable of delivering 2,100 megawatts of renewable energy, enough to power more than 1.5 million homes. By delivering wind and solar power to the largest electricity markets in the U.S., SOO Green will significantly reduce carbon emissions from regional grids and enhance system reliability and resilience.
energyRe is a co-developer of Leading Light Wind, the only American-led offshore wind project with a lease in the New York Bight, capable of powering up to one million U.S. homes with 2,400 megawatts of clean energy. As one of the only U.S.-domiciled offshore wind developers in the world, energyRe is at the forefront of the emerging American offshore wind industry and is well-positioned to drive a robust domestic supply chain, workforce development pipeline, and manufacturing capabilities.
In 2022, energyRe acquired Southern Current, a leading developer of solar and storage assets in South Carolina. In September 2022, energyRe launched Radial Power, a developer, owner, and operator of large-scale distributed clean energy systems, providing commercial and industrial (C&I) solar and storage solutions as well as electric vehicle charging services.
energyRe is an affiliate of Related Companies, one of the most prominent real estate firms in the U.S. and one of the nation's largest creators and preservers of affordable housing.
BofA Securities served as placement agent for the financing, and Lazard Frères & Co. LLC served as financial advisor to energyRe.
About energyRe
energyRe is a leading independent energy company focused on solving complex environmental sustainability challenges and delivering clean energy solutions across utility-scale transmission, onshore wind and solar, offshore wind, storage, and distributed generation. Guided by innovation and collaboration, and supported by expertise and experience, energyRe is committed to creating a reliable renewable energy future for all. energyRe has offices in New York, Houston, Indianapolis, and Charleston. For more information, visit www.energyre.com。
About Elia Group
Elia Group is a key player in electricity transmission. Through our subsidiaries in Belgium (Elia) and Germany (50Hertz), we operate 19,349 km of high-voltage lines, making us one of Europe's top five transmission system operators. By expanding international high-voltage connections and integrating an increasing share of renewable energy into the grid, we simultaneously promote the integration of the European energy market and the decarbonization of society. In addition to its transmission system operator activities, Elia Group provides consulting services to international clients through its subsidiary Elia Grid International. In recent years, the group has launched new non-regulated activities, such as re.alto, Europe's first marketplace for exchanging energy data through standardized energy APIs, and WindGrid, a subsidiary that will continue to expand the group's international activities, contributing to the development of offshore grids in Europe and beyond. The legal entity Elia Group is listed on Euronext Brussels.
About Glentra Capital
Glentra Capital ('Glentra') was founded in 2022 by senior executives from the renewable energy and fund management industries with the vision of generating attractive risk-adjusted returns while accelerating the global energy transition towards a clean and sustainable future. Glentra will achieve this vision by investing in and nurturing exceptional companies that deliver the energy infrastructure of the future, with investments ranging from offshore wind to solar and sustainable fuels development platforms and their supply chain companies, as well as energy optimization and integration businesses. Glentra's partners and team combine industry and investment experience, ensuring a unique platform for growth and value creation for portfolio companies and investors. Glentra has offices in Copenhagen and London.
About Novo Holdings A/S
Novo Holdings is a holding and investment company that manages the assets and wealth of the Novo Nordisk Foundation. Novo Holdings' purpose is to improve human health and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation.
Novo Holdings is wholly owned by the Novo Nordisk Foundation and is the controlling shareholder of Novo Nordisk A/S and Novozymes A/S, managing its portfolio with a long-term return perspective. In addition to managing a broad portfolio of equities, bonds, real estate, infrastructure, and private equity assets, Novo Holdings is a world-leading life science investor. Through its Seed, Venture, Growth, and Principal investment teams, Novo Holdings invests in life science companies at all stages of development. As of November 2023, Novo Holdings had total assets of EUR 150 billion.
About PKA
PKA is one of Denmark's leading pension funds, providing members with lifelong security through simple, solidarity-based pension schemes. With a total of 355,000 members, primarily from the social services and healthcare sectors, PKA has managed their pensions soundly since 1954. Today, the combined net assets have reached a size that can make a difference in society. For example, the fund's investments drive the expansion of green energy infrastructure, support sustainable construction, and create growth in developing countries. PKA manages approximately USD 60 billion in assets and has invested in solar and wind energy for over a decade, being regarded as a green leader in the pension industry, generating good long-term returns for members while contributing to a more sustainable future.
