Intersect Power, LLC, ("Intersect Power" or the "Company") announced today a $750 million growth equity investment led by TPG Rise Climate, the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise, with additional participation from existing investors, Climate Adaptive Infrastructure, LLC. ("CAI"), and Trilantic Energy Partners North America ("Trilantic"). This strategic partnership and investment will accelerate the achievement of Intersect Power's continued progress in implementing its vision to enable pathways between clean electricity and the broader economy.
This growth equity investment will provide significant capital to scale Intersect Power's business including the Company's renewable energy portfolio and new product pipeline in the rapidly expanding clean energy sector. This investment supports the Company's differentiated focus on shorter tenor offtake contracts combined with large-scale battery storage and new products, like green hydrogen, allowing it to benefit from the superior risk and return profile created by rising prices for global energy and clean commodities.
"Our partnership with TPG Rise Climate, CAI and Trilantic further fuels our collective pursuit to accelerate the deep decarbonization of our economy, build American energy security, and deploy the billions of dollars of hard assets required to solve the climate crisis," said Sheldon Kimber, Intersect Power CEO. "The bridge between vision and progress is achieved by the continued buildout of clean energy solutions and our team is energized, now more than ever, to tackle climate change with gigawatts of real assets in the ground."
With the US clean energy market's recent supply chain disruptions, increasing capital costs and regulatory uncertainties, this investment further reinforces the durability of Intersect Power's core business. The Company's focus on shorter tenor contracts, differentiated financing structures and domestic supply chains has put Intersect Power in a unique position to continue to reliably deliver the most scalable and innovative low-carbon solutions for customers in wholesale and retail energy markets, including a growing number of emerging clean commodities customers, such as green hydrogen and e-fuels.
"Intersect's proven delivery of large, scalable clean energy projects and differentiated business model positions the Company to lead the way into new markets and clean energy products, as our economy continues to decarbonize," said Ed Beckley, Partner at TPG and senior member of its climate investing team. "Energy demand will continue to increase as we accelerate the electrification of our economy. We are thrilled to support the Company's work in delivering innovative clean energy solutions to the grid and the industrial corners of our economy," added Steven Mandel, Business Unit Partner in TPG Rise.
As part of the investment, Beckley, Mandel, and Maryanne Hancock, CEO of TPG's Y Analytics, will represent TPG Rise Climate on Intersect Power's board of directors, alongside Bill Green of CAI and Glenn Jacobson of Greenbelt Capital Partners.
"We are proud to continue our support of Intersect Power and join the team in celebrating yet another impressive fundraising milestone for the Company. As an investor and outspoken advocate of the team's work since Intersect's inception, we've been consistently reaffirmed in our support by their proven track record," said Bill Green, Founder and Managing Partner at Climate Adaptive Infrastructure. "From shorter tenor contracts to unbundling RECs to American module procurement, the team has consistently been ahead of the market in accelerating the adoption and impact of clean energy products that are the solution to the climate crisis."
This investment will support Intersect Power's accelerated entry into new markets and technologies, including nearly 1 GW of green hydrogen production, and the continued development of its mid to late stage portfolio totaling 8.5+ GWp and 8+ GWh throughout the United States. The Company currently has 2.2 GWp of solar PV and 1.4 GWh of co-located storage currently under construction that will be in operation by 2023.
BofA Securities served as financial advisor to Intersect Power in relation to the transaction and Orrick, Herrington & Sutcliffe LLP acted as legal counsel. PJT Partners served as financial advisor to TPG in relation to the transaction and Kirkland & Ellis acted as legal counsel.