Green loan underwritten by Goldman Sachs will be used to finance smart, efficient cleantech solutions nationwide, including heat pumps, solar panels and battery storage, LED lighting, EV charging stations and more
NEW YORK – January 14, 2022 – BlocPower, a leading national climate technology company focused on greening aging urban buildings, today announced that it has received $30 million from Microsoft Corp. (NASDAQ: MSFT) through its Climate Innovation Fund to accelerate and expand the company’s ongoing decarbonization projects, including Ithaca, NY – the first large-scale, city-wide electrification initiative in the U.S. These funds enable BlocPower to continue its turnkey engineering, financing, procurement and project implementation services for a wide variety of energy efficient, renewable energy and/or HVAC upgrade projects around the country, with a focus on low-to-moderate income (LMI) and environmental justice communities.
Since 2014, BlocPower has retrofitted more than 1,200 buildings in 26 American cities, replacing toxic, fossil fuel-burning heating and cooling systems with clean, efficient, all-electric air source heat pumps, water heaters and solar panels. BlocPower helps building owners reduce energy consumption and energy bills while creating a smarter, healthier more comfortable living environment, and communities served benefit from improved health outcomes, lasting job creation and reduction of greenhouse gas emissions from buildings.
“Through the expansion of the Goldman Sachs program, visionary technology companies like Microsoft have the ability to change the world not only through their innovative products but also through their climate change policies, initiatives, investments and leadership,” said Donnel Baird, CEO of BlocPower. “The funding provided through Microsoft’s Climate Innovation Fund will fuel BlocPower’s efforts to make a meaningful impact on climate change and bring environmental and economic justice to frontline communities across America that need it the most.”
Microsoft’s Climate Innovation Fund is a $1 billion investment initiative announced in January 2020 to accelerate technology development and deployment of new climate innovations through equity and debt capital. One of the fund’s primary investment priorities is supporting solutions, business models, and leadership teams that advance climate equity in underserved communities in the U.S. and around the world.
“When it comes to transitioning to cleaner energy solutions, it’s imperative that no one gets left out because they cannot afford the solutions that will address climate change and improve the health of their communities,” said Brandon Middaugh, director of Microsoft’s Climate Innovation Fund. “BlocPower’s focus on bringing clean energy solutions to underserved communities first is an important part of expanding access to carbon reduction technologies. Microsoft is proud to help BlocPower achieve its mission to green aging urban buildings and to support the climate transition in U.S. communities.”
In 2021, BlocPower closed a $50 million loan facility from The Urban Investment Group within Goldman Sachs Asset Management and $5 million from Inclusive Prosperity Capital to fund the company’s decarbonization projects. Goldman Sachs is underwriting and administering this investment commitment by Microsoft’s Climate Innovation Fund.
“The scope of the challenges that underserved communities face in navigating climate change and creating more resilient neighborhoods requires unprecedented levels of innovation and collaboration, said Margaret Anadu, Global Head of Sustainability and Impact for Goldman Sachs Asset Management. “Low-income neighborhoods bear the brunt of climate change impacts and yet lack sufficient resources to combat it – that is why we are so delighted to partner with Microsoft to expand BlocPower’s transformational work of creating more sustainable and healthier places to live where it’s needed most.”
BlocPower is a Brooklyn-based climate technology startup that is making American cities greener, smarter and healthier. Since its founding in 2014, the company has retrofitted more than 1,200 buildings in disadvantaged communities in New York City, with projects underway in 26 cities, including Philadelphia, Milwaukee, Baltimore, Oakland and more. BlocPower uses proprietary software for analysis, leasing, project management, and monitoring of clean energy projects that save customers between 20-70 percent on annual energy costs. For more information, please visit https://blocpower.io.
About the Goldman Sachs Asset Management Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $12 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
Eric Sokolsky, Sparkpr for BlocPower