The $91M financing sourced from KeyBank and U.S. Bancorp Impact Finance will enable BlueWave, a Boston-based clean energy IPP and B Corp, to advance the first 20MWs of its 2GW+ project pipeline
BlueWave, a leading solar developer, owner, and operator in the Northeast U.S., announces a major financing milestone that will enable the B Corp to achieve long-term ownership and management of its growing portfolio. The $91 million financing includes a debt raise of $64 million with KeyBank and a tax equity raise of $27 million with U.S. Bancorp Impact Finance for the construction and long-term financing of five projects in Massachusetts featuring innovative dual-use solar development attributes, also known as agrivoltaics, that are strategically implemented to benefit all parties impacted by the projects, including landowners, farmers, and surrounding community members. KeyBanc Capital Markets Inc. served as coordinating lead arranger for the debt financing.
"The development of these innovative agrivoltaic projects across the Commonwealth has been many years in the making and represents the joint effort of BlueWave and its team of trusted partners who have brought these clean energy projects to fruition," said BlueWave Chief Executive Officer and Co-Founder Trevor Hardy. "The collaborative support from our parent company Axium Infrastructure has enabled us to bring long-term, institutional capital to a portfolio of projects that advance the sustainable generation of renewable energy in harmony with the continuing agricultural operations."
With a statewide goal of reaching net-zero emissions by 2050, renewable energy has emerged as a pressing topic among local policymakers and municipalities in Massachusetts. As a certified B Corp, BlueWave is developing projects across the Commonwealth that supply clean energy, conserve farmland, and support underserved residents. The financed projects will be part of the Solar Massachusetts Renewable Target (SMART) Program and deliver solar energy bill credit savings to approximately 770 low-income households.
Four of the five solar projects are uniquely designed to allow for uninterrupted farming operations beneath the solar arrays while the fifth site will create new grazing pasture. Each site features a varied selection of crops, pollinator habitats, and livestock grazing operations. The projects will deliver enough clean energy to the grid to power 2,570 households in Massachusetts, in turn offsetting the carbon emissions from 2,500 cars or what 540,000 mature trees could absorb. The projects are expected to begin commercial operation later this year.
"The BlueWave team is uniquely poised to succeed, thanks to our team of industry leaders with vast experience in farming and regenerative agriculture. We've paired our people with leading researchers from American Farmland Trust and the University of Massachusetts on select sites, with funding from the U.S. Department of Energy, to advance understanding and deployment of agrivoltaics. As solar continues to scale across the country, these projects aim to set a new industry standard for responsible land use and ensure farmland is kept viable for future generations," added Mike Marsch, BlueWave's Chief Development Officer.
BlueWave was advised by CohnReznick Capital and Foley Hoag, LLP.
To learn more about BlueWave, visit bluewave.energy.
About BlueWave: BlueWave's mission is to protect our planet by transforming access to renewable energy. As a pioneering renewable energy company that develops and owns solar and battery storage projects, BlueWave has a long track record of success and is developing several gigawatts of solar and battery storage projects throughout the United States to ensure our grid is reliable and efficient in a clean energy future.
BlueWave is proud to be a certified B Corp, recognized by B Labs as "Best in the World" in Governance.
About KeyCorp (NYSE:KEY)
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $195 billion at June 30, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
About U.S. Bancorp Impact Finance: U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is an industry leader in providing financial solutions that help create positive impact for communities and the environment. For 35 years, its tax credit investments and syndications, lending and other financial solutions have helped create affordable housing, spur economic activity in underserved communities, restore historic buildings, develop renewable sources of energy, and strengthen community development financial institutions (CDFIs) nationwide. As of June 30, 2023, it has $43.3 billion in tax credit equity investments; $5.5 billion in current loan commitments to affordable housing, environmental and renewable energy projects, community development financial institutions (CDFIs) and other community development intermediaries; and has raised $16.2 billion of federal tax equity to support social and environment projects in communities nationwide. Learn more at usbank.com/impactfinance.