Deutsche Bank Provides $200 Million credit Facility to Distributed Energy Resource Developer Catalyze
Deutsche Bank has committed a $200 million credit facility to Catalyze, a Houston-based developer of renewable energy and Distributed Energy Resource (DER) projects across the United States. This financing, structured as a three-year HoldCo revolving and term debt and letter of credit, comes alongside more than $700 million in previous investments secured by Catalyze, including funding from ATLAS SP Partners and RBC.
The investment is intended to accelerate the rollout of Catalyze’s projects nationwide. Catalyze has already established a portfolio including standalone battery storage in the Bronx, New York, and community solar installations in southern California and western New York state.
This facility utilizes a HoldCo structure, allowing Catalyze to raise capital at the holding company level without increasing debt on its individual project companies, thereby providing liquidity for faster project growth.Deutsche Bank’s commitment arrives as some financial institutions have scaled back their public pledges to energy transition financing. However, the bank recently reaffirmed its commitment to achieving net-zero emissions by 2050 and reducing its own greenhouse gas emissions, alongside decarbonizing its corporate loan portfolio across various industrial sectors like cement, steel, oil & gas, automotive, and power generation.”This HoldCo facility represents a pivotal step, enabling us to invest across our enterprise, accelerate growth, and deepen our capacity to deliver clean energy at speed and scale,” stated Catalyze CEO Jared Haines. “The alignment with Deutsche bank reflects confidence in our business model and positions us to unlock significant value for our investors, customers, and the communities we serve.”
Jeremy Eisman, Head of Infrastructure and Energy Financing at Deutsche Bank, highlighted the possibility presented by the growing DER market, stating, “The rapid increase in demand for distributed energy solutions presents a significant opportunity, and Catalyze has demonstrated they are well-positioned to capitalize on it.”
Catalyze’s portfolio spans multiple energy fuel resources and includes a partnership with Microgrid Labs focused on microgrids for electric vehicle fleet charging. Last year, New York’s NY Green Bank provided $100 million in financing to Catalyze specifically for community solar projects within the state. industry analysts predict over 217 GW of DER capacity will be added to the U.S. grid by the end of the decade, despite ongoing challenges with grid infrastructure.
