Generate Capital forges $600 million partnership with sustainable energy financier Alturus

ImpactAlpha Editor

Amy Cortese

ImpactAlpha, Oct. 8 – Generate will take an undisclosed minority stake in Boston-based Alturus and provide up to $600 million in financing for energy efficiency projects that the companies will own and operate.

The deal was the first announced by Generate since its $1 billion funding haul in February. 

Both Generate and Alturus offer sustainable infrastructure-as-a-service, defraying upfront capital costs for clients. Generate builds, owns and operates green power, transportation, water and waste management facilities for clients such as schools and cities, while Alturus advises on, manages and structures financing for corporate energy systems from heating and cooling to lighting.

The partners see an opportunity as companies look to meet ambitious climate goals and reduce  energy costs. “Virtually every company in the Fortune 1000 has aging infrastructure challenges they are looking to solve,” Alturus’ Charles Esdaile told ImpactAlpha

The partnership will  “accelerate the transition to a decentralized, decarbonized, democratized and digitized resource infrastructure,” adds Generate’s Scott Jacobs.

Climate makes a comeback in coronavirus recovery plans (just don’t call it climate action)

Follow the money

The deal brings together two sustainable infrastructure innovators – at their former company, Alturus’ founders helped create low-risk purchasing agreements that corporations now routinely use for their renewable energy – and comes as interest in the sector picks up. (Alturus tuned away a major private equity firm for Generate). 

Another signal: High-tech greenhouse grower AppHarvest snagged $475 million in fresh capital – and a $1 billion valuation – when it was acquired by a SPAC in late September. 

Greenhouse venture AppHarvest will reach the Nasdaq before its tomatoes reach consumers