New York bank secures capital raise for green infrastructure projects

In New York, the NY Green Bank has secured a capital raise from the Bank of America to expand its operations and investments in clean and smart energy projects.

The capital is expected to help NY Green Bank – a division of the New York State Energy Research and Development Authority (NYSERDA) – to provide funding to clean projects including solar, energy efficiency, wind, and sustainable transport at a faster rate. The capital raise is expected to go a long way in helping New York to achieve its goal of reducing greenhouse gas emissions by 40% by 2030.

The $314 million transaction completed by NY Green Bank is the first private capital raise and the largest ever conducted by a green bank in the US, according to a statement.

NY Green Bank will use the capital to continue its investments in renewable and smart energy projects without requiring further public funds at a time the demand for funding has increased. The demand for funding has accelerated as the state continues to explore new technologies and expand the deployment of renewable energy solutions capable of advancing the transition to net-zero. With up to 3GW of solar energy having being installed in the state by July 2021, more funding will be required to reach the 2025, 6GW solar capacity target set by New York. The ability by the state government to rally both state and private funding for solar energy deployment have made New York being ranked second for total installations across the US in 2020.

With green hydrogen being touted as one of the key energy resources that need scale-up for transition to net-zero, New York has embarked on an initiative in which the state is assessing the role the technology can play in ensuring its decarbonisation goals are met. In July, State governor Andrew Cuomo announced a green hydrogen feasibility study, plans to join international green hydrogen consortiums, pilot projects, and funding for green hydrogen energy storage projects. All these initiatives will require funding which will be sourced from initiatives such as the NY Green Bank.

Andrew Kessler, Acting President, NY Green Bank, said: “NY Green Bank is proud to have built a portfolio that is attractive to private sector capital providers. This transaction demonstrates that we have achieved our goal of increasing private sector activity in clean energy markets and leverages that progress to fuel our focus on new areas where market transformation is still needed.”