Pennsylvania Launches $90M to Boost Clean Energy Innovation

Many states are now pursuing seed and venture investment strategies to support the growth of clean energy businesses. Last month, Pennsylvania concluded a year-long series of meetings with private sector investors, financial experts, and nonprofit state energy funds and introduced a $90 million strategy to leverage public and private capital for renewable energy. The plan links economic development and environmental protection in a manner intended to promote the state as a leader in emerging clean energy industries.

 

The centerpiece of this new strategy is the creation of the $40 million Keystone Green Fund (the Fund), which will provide private equity and debt investments, venture capital placements, and project financing for projects related to alternative power sources. The state Treasury Department is pledging $15 million of these funds to support the commercialization of clean energy technologies. Recipients, which must have a direct business connection to Pennsylvania, will be considered for additional investment by Pennsylvania's sustainable energy funds, including the TRF Sustainable Development Fund, the West Penn Power Sustainable Energy Fund, and First Energy's Sustainable Energy Fund.



This will be the first time Pennsylvania's clean energy funds have pooled their resources to promote businesses across the state. The remaining $25 million from the Fund will be invested in companies or projects that offer an attractive return on state investment and offer more general benefits for the state's energy independence.

 

An additional $50 million will be earmarked for equity investments in alternative energy companies and technologies. The Treasury Department will reallocate these funds from existing investment managers to managers who can demonstrate a history of profitable investment in clean energy companies. Treasurer Bob Casey also will develop new investment screens to direct the department's other investments toward companies that adopt sustainable energy practices.

 

Pennsylvania Gov. Ed Rendell also announced $5.1 million in awards through the state's Energy Harvest Grant Program this month. The program, which has existed since 2003, has spent $21 million and leveraged an additional $51.9 million for projects that make use of solar, wind, biomass, geothermal, biodigestion and landfill methane gas technologies. The governor made 27 such awards to updating business facilities and practices to improve energy efficiency and reduce dependence on nonrenewable fuels.

 

Read the Keystone Green Investment Strategy at: http://www.patreasury.org/documents/KeystoneGreenInvestmentStrategy.pdf

 

SSTI reported on the creation of the Energy Harvest Grant Program in 2003. You can access the original report at: http://www.ssti.org/Digest/2003/060603.htm#PA