Clean energy services company Carbon Lighthouse and financier, owner and operator of distributed energy and resource infrastructure Generate Capital, have announced the close of a $65 million project finance fund to support the rapid growth of Carbon Lighthouse's clean energy and efficiency business.
Carbon Lighthouse will use the funds to help more building owners and investors across the United States turn energy waste from existing assets into guaranteed, bankable revenue streams. This is Carbon Lighthouse's third and largest project financing to date.
According to Navigant Research, the global market for energy efficient building technologies is expected to grow to $360.6 billion by 2026. Through Efficiency Production, Carbon Lighthouse's unique, data-obsessed clean energy and efficiency approach, commercial real estate owners and operators (including REITs, hotels, schools, and small businesses, among others) can turn the energy savings achieved through their real estate assets into guaranteed revenues that can be leveraged during financial transactions. Carbon Lighthouse can save building owners $0.40 to $0.60 per square foot, boosting net profit by $5 to $10 per square foot when a building is sold. A building owner with a 10 million square foot portfolio can gain $50 million to $100 million in new, bankable profit.
“This project finance fund enables us to continue providing services to clients with zero out-of-pocket costs, reducing risk even further for our clients” said Brenden Millstein, co-founder and CEO of Carbon Lighthouse. “This allows us to expand our services at an even quicker pace and wider scale, while achieving more and more impact as we move full speed ahead into 2019.”
Jigar Shah, president and co-founder of Generate Capital, added that Carbon Lighthouse has cracked one of the most challenging but crucial markets for cutting carbon emissions from the built environment: commercial real estate and that they have proven that energy efficiency savings can be turned into lease revenue that is widely recognised as good REIT income which has been the largest hurdle to attracting the attention of property owners, hotels, and other building owners.
Carbon Lighthouse has also announced a $7.5 million follow-on equity investment to its $27 million strategic growth round closed earlier this year, bringing total investment to $34.5 million. The additional investment came from CEAS Investments, run by Mike Wohl, who invests on behalf of a large single-family office in South Florida.
With its newly raised project finance fund, additional equity investment, and history of profitability, Carbon Lighthouse is poised to enter 2019 in a strong financial position. The company will continue to scale Efficiency Production to make it easy and profitable for more building owners to reduce energy waste.
Carbon Lighthouse has worked in more than 500 buildings across the United States from Hawaii to New York and has eliminated the equivalent of six power plants, with nine more currently under contract. By 2020, the company aims to cut the equivalent of 50 power plants, and will be on track to eliminate 50 more every year after that.