Previously, Key provided Bloom $300 million in project financing for approximately 70 Bloom Energy fuel cell projects throughout the United States.
Bloom fuel cells are built in Newark and a Battery of Bloom cells provide power that is fed into the Delmarva Power grid. The company is headquartered in the Silicon Valley community of Sunnyvale, CA.
Bloom is focusing on providing backup power, noting that the nation has experienced more than 3,500 grid outages in 2017, impacting 36.7 million people. The Department of Energy estimates that electricity outages caused by extreme weather and other factors cost American businesses more than $150 billion annually.
Bloom’s technology is being adopted in sectors such as health care, high-tech manufacturing, and data centers.
The investment from Key will provide lease financing for approximately 10-15 megawatts of Bloom Energy Server power, the deployment of which will have the effect of reducing CO2 emissions by 33,000 to 50,000 tons per year relative to the US grid. The additional financing is also expected to enable shorter term deal structures that cater to customers who cannot sign long-term contracts.
“Bloom Energy has developed a breakthrough electric power solution that directly addresses the growing affordability, reliability and sustainability needs of American businesses,” said Adam Warner, president of Key Equipment Finance, which provides equipment financing tailored to the energy market. “Customized financing plays an important role in making clean, affordable, reliable electricity available to more customers, which contributes to KeyBank’s broader sustainability goals.”
KeyBank has made renewable portfolio investments of more than $2 billion and financed more than 14.1 GW of renewable power generation in the US since 2010.
Key began its commercial relationship with Bloom Energy in 2014 with a $100 million commitment for lease financing. Since then, Key has continued to increase its investment, including more than $300 million for lease financing and a $30 million investment in Bloom’s Power Purchase Agreement program.
Key Equipment Finance has been in the equipment financebusiness for 45 years and is one of the largest bank-based equipment financeproviders in the U.S. Key Equipment Finance manages nearly $13 billion inassets and originates nearly$6 billion of equipment financing annually.