News | April 26, 2016

Clean Power Capital Sees Dramatic Growth In Waste To Value Led By Recent California Legislation

In October 2014, Governor Jerry Brown signed AB 1826, a critical piece of legislation that will lead to significant opportunities for waste to value companies across the state. On April 1, 2016, this legislation began to come into force as businesses are now required to recycle their organic waste.As a San Francisco-based company, Clean Power Capital "CPC" is particularly well suited to support clean technology corporations and renewables projects in the waste management space with well-structured financing. We provide strategic advisory services for companies seeking to leverage California's stated goals through innovation and renewable energy solutions.

"AB 1826 will serve as an impetus for investment in the waste management sector, a largely untapped source of value and renewable energy", says CPC's Managing Partner, Mark D. Hill. "At the end of the day, long-term investments into renewable energy is good business, and makes us less reliant on the often volatile oil and gas markets. The time has come for clean energy proliferation, it simply makes the best sense economically and environmentally moving forward."

The mandate that came into effect at the beginning of the month will aid in the attainment of a statewide goal of recycling or composting 75% of organic waste by 2020. This is truly a game-changer as, according to the Sacramento Bee, organic matter makes up nearly half of California's solid waste, the total volume of which is projected to reach 80 million tons by 2020.

"This legislation builds upon the foundation already in place for long-term environmental responsibility by furthering previous legislation to reduce greenhouse gas emissions and reach the state's Renewable Portfolio Standard of 50% by 2030," says CPC's Managing Partner, Alexander von Welczeck. "The mandate also goes hand-in-hand in with the continued and growing focus on the triple bottom line (people, planet, profit) on the behalf of financial institutions. Given this focus, there are more funding sources with reasonable terms competing for quality opportunities in investment-grade technology and projects that further environmental sustainability than at any time in the last 30 years. Investment grade waste-solution technologies and projects are now poised to become a growing focal point of these investors as the mandate will drive new investment opportunities in the waste to value and energy sectors."

While political mandates have proven to be a significant impetus for growth in the renewable energy sector, the industry is no longer dependent on handouts and subsidies: investments in the proliferation of renewables simply makes good business sense. According to a recent Forbes article, even with oil and gas prices tumbling by nearly 40%, the demand for renewable energy will continue. "Oil can mean energy, but energy doesn't mean oil... From an economics perspective, oil and renewables are not substitutes: when the price of one decreases, demand for the other does not decrease." This could not be more true as Governor Brown's plan comes into effect; through public/private partnering, renewable energy can now cost less than oil and gas, even with current market conditions.

Today, the financial mechanisms for growth in renewable energy are in place to provide "creative financing mechanisms, new asset classes, and public/private market solutions that facilitate capital engagement are making clean energy investing more accessible and more secure than ever." CPC stands ready to assist companies seeking to benefit from the incentives provided by the regulatory mandates ahead.

About Clean Power Capital
CLEAN POWER CAPITAL ("CPC") is a private investment bank committed to servicing clients in the accelerating Clean Technology and Renewables markets across a wide array of subsectors; from waste-to-value, energy efficiency including storage and smart grid, to alternative fuels and energy, to water and agriculture.

The firm prides itself on providing well-structured Corporate and Project financing by accessing the international finance markets to ensure the most competitive and strategic sources for debt, equity and tax equity investment on behalf of our clients. CPC specializes in finding optimum solutions in financing for both private and public companies with growth capital needs of $5 million to over $100 million, as well as projects and project portfolios with financing needs of $20 million to over $500 million. Our experienced senior banking team have provided lending services and participated in funding over $2.1B for growth capital, working capital, assets, licensing, mergers & acquisitions (M&A), Initial Public Offerings (IPO), and other financing events.

For more information, visit www.CleanPowerCapital.net.

Source: Clean Power Capital