April 2012 - Bostonia Finances ESPC for US Army's Largest Solar Photovoltaic System, White Sands Missile Range, New Mexico
Bostonia Group provided $17.5 million of funding to allow Siemens Government Technologies, Inc. to install a 4.465 MW solar photovoltaic (PV) generating system and energy conservation measures for the U.S. Army Corps of Engineers at the White Sands Missile Range in New Mexico. Bostonia Partners LLC, the investment banking arm of Bostonia Group, structured the financing and is the third party owner of the energy assets under a Renewable Energy Services Agreement as part of an Energy Savings Performance Contract (ESPC) with the US Army Corps of Engineers. Bostonia Global Securities LLC, the broker/dealer arm of Bostonia Group, placed the transaction in the private placement market.
Unlike a traditional ESPC, a private owner, which is an affiliate of Bostonia Partners, will monetize federal tax incentives including the American Recovery and Reinvestment Act Section 1603 Treasury Cash Grant, as part of the financing. Siemens will build and operate the system under agreement with Bostonia Partners. Construction is underway and will be completed in December 2012.
“Bostonia is pleased to be a stakeholder in this important project that helps the US Army meet its renewable energy goals,” said Peter Flynn, principal at Bostonia Partners. “We look forward to continuing to work on more renewable energy projects through innovative public-private partnerships.”
Upon completion, the project will be the largest solar PV system operating on U.S. Army land, for the direct benefit of the U.S. Army, and will help White Sands Missile Range achieve 10.8 percent renewable energy by the end of 2012, compared to the .5 percent currently at the installation. The project supports President Barack Obama’s directive that federal agencies use Energy Service Performance Contracts to make $2 billion worth of energy efficiency upgrades over the next two years, as well as supporting the Army’s renewable energy goals.
White Sands in the Press: