New Energy Capital fund invests $23.5m in largest US fuel cell project

The New Energy Capital Cleantech Infrastructure Fund (NECCIF) has made a $23.5m investment into the largest integrated fuel cell project in the US, which will run on renewable biogas directed from the San Diego wastewater treatment facility.

The 4.5MW project will involve installing three fuel cells on various sites owned by the University of California San Diego and the City of San Diego.

‘This was the most complicated financing we have ever undertaken, but we were blessed with good partners. We believe this will be a model for other biogas projects in the years to come,’ said Scott Brown, CEO of New Energy Capital.

The $23.5m facility will employ molten carbonate fuel cells produced by Connecticut-based developer Fuel Cell Energy, and will use renewable biogas produced by an affiliate of BioFuels Energy from waste methane gas at the City of San Diego waste treatment plant.

The three fuel cells are expected to produce approximately 35 million kWh of electricity per year and save the city of San Diego more than $2m in electricity costs over ten years.

Located in Encinitas in California, BioFuels Energy develops renewable energy projects that use a variety of biogas sources, and will employ the services of California-based fuel cell designer, Otto Rosentreter, on the project.

The project is expected to create around 15 construction jobs, as well as 50 jobs at Fuel Cell Energy.

New Energy Capital partnered with the CleanTech Alliance Fund, which is managed by North Sky Capital, to finance the project through a complex combination of equity, state grants and tax credits.

US Bancorp provided tax credit financing in collaboration with New Markets Community Capital, a division of TELACU.

Managed by New Energy Capital Partners, New Energy Capital Cleantech Infrastructure Fund invests in, owns and operates renewable energy, energy efficiency, waste recycling, and distributed generation projects.

Source: NewNet