Blackstone Wants a Big Slice of the Energy Transition Pie, Forms Credit Sustainable Resources Platform

Posted on 01/21/2022

The battle of renewable investing in the credit market continues as Blackstone joins KKR and TPG Capital in investing in the “energy transition”. Blackstone revealed the launch of Blackstone Credit’s Sustainable Resources Platform focused on investing in and lending to renewable energy companies and those supporting the energy transition. Blackstone Credit is one of the world’s largest providers of private credit in the energy transition marketplace. Blackstone Credit’s Sustainable Resources Platform is a dedicated credit platform that seeks to address the growing challenges, investment needs and expertise required by this historic transition that some estimated it to be US$ 100 trillion. It is led by Robert Horn, who has been with Blackstone Credit since its founding, and has been named Global Head of the Sustainable Resources Group for Blackstone Credit. Simon Hayden has joined the firm from EIG, and he is a Senior Managing Director for Blackstone Credit in London and leads the Sustainable Resources activities in Europe.

The Platform will invest across the credit spectrum in investment grade credit, non-investment grade credit, preferred and convertible securities. It will focus on a broad range of sectors, including residential solar and home efficiency; renewable electricity generation and storage; products, services, technologies and natural resources that enable the energy transition; decarbonized transportation; sustainability linked loans; green financings that fund environmental projects; and other energy infrastructure investments.

Blackstone more broadly has been an active participant in the market with numerous recent debt and equity investments across its businesses, including:

Committed approximately $3 billion in Invenergy Renewables, the largest developer of renewable energy projects in North America.

Financed over 350 MW of solar across 18 states through an investment in Altus Power, a solar power company that provides clean electricity and energy storage to commercial and residential customers across the United States.

Committed over $3 billion for residential solar and home efficiency loans that enable homeowners to reduce their carbon footprint in partnership with GoodLeap and other sustainable finance partners.

Invested in ClearGen, a company that provides flexible capital for microgrids and other energy transition solutions for commercial and industrial customers.

Invested in Transmission Developers Inc. (TDI) to develop the Champlain Hudson Power Express (CHPE), an underground electric transmission line spanning approximately 339 miles between Canada and New York City. The project will deliver 1,250 MW of clean power to New York City, which is still reliant on fossil fuels for approximately 85 percent of its electricity consumption.

Keywords: Blackstone Group LP.

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