Greenbacker Capital Management LLC announced that, through an affiliated fund, it is increasing its investment in Clear Energy Renewables, an owner-operator of hydroelectric power generation facilities in the U.S. state of New York.
The expanded investment provides growth capital and will enable Clear Energy to acquire additional hydro facilities in the Empire State. This expanded partnership with Clear Energy demonstrates Greenbacker’s strong, ongoing commitment to clean energy alternatives to fossil-burning power generation, a release said.
Greenbacker’s initially invested in Clear Energy in late 2020, and the company used those funds to acquire and modernize two hydro assets and upgrade a third facility it already owned. Clear Energy will use the proceeds of Greenbacker’s additional investment to finance the acquisition and upgrade of two more hydro facilities in New York.
“This expanded investment is an indication of our confidence in Clear Energy’s ability to operate small-hydro facilities efficiently and profitably, as well as our ongoing belief in the promise of distributed hydroelectric power, both as an investment that generates solid, consistent returns and as a viable alternative to other, more polluting forms of generation,” said the fund’s Managing Director and Principal, Benjamin Baker. “Our initial engagement with Clear Energy in 2020 exceeded our expectations, and we are thrilled to deepen our relationship in a way that we expect will drive long-term benefits for our investors.”
Headquartered in the Denver area and led by partners Matthew Wenger and Michael Prendergast, Clear Energy acquires existing hydropower facilities and invests in their modernization.
“With its financial strength, strategic insight and engineering expertise, Greenbacker is an ideal partner for us, one with whom we have successfully collaborated to support the greater adoption of sustainable generation,” said Wenger, Clear Energy’s chief executive officer. “We are thrilled that Greenbacker is adding to its initial investment, and we look forward to working together towards even greater success in the future.”
Greenbacker established the fund in 2020 to invest in companies that are focused on sustainable infrastructure development serving high-value markets across the U.S.