Commercial, Finance, Sourcing Renewables - March 16, 2020
University of Iowa receives clean energy investment
The University of Iowa is implementing energy reduction strategies and exploring opportunities for cleaner energy use through a $1 billion 50-year utility concession contract that supports their goal of being zero-carbon by 2025.
The university most recently received a $115 million preferred equity investment by Hannon Armstrong Sustainable Infrastructure Capital in partnership with ENGIE and Meridiam. The university first established the “Hawkeye Energy Collaborative” to support their energy and sustainability goals after it was awarded the $1 billion utility management concession contract in December, a deal that closed on March 10.
The Hawkeye Energy Collaborative is working on solutions for energy reduction, such as energy-as-a-service and AI-aided energy management. Additionally, they are exploring opportunities for clean generation through renewable energy, microgrids and energy storage.
“We are pleased to invest in the Hawkeye Energy Collaborative, a landmark public-private partnership for resiliency and sustainability goals,” Hannon Armstrong Chairman and CEO Jeffrey Eckel said in a statement. “The comprehensive concession agreement to address multiple utility systems is innovative in scope and ambition – providing a model of a campus utility system that many U.S. colleges and universities will look to for improved system efficiency, cost, and performance. Our expansion into the higher education P3 asset class will further diversify our portfolio and bolster our efforts to create a climate-positive future.”
Through this agreement, ENGIE will operate, maintain, optimize and improve the on-campus utility systems, including heating, cooling and electricity to support lowering their energy use and campus emissions.