PROJECT FINANCE FUND
60Hertz’s goal is to raise a $200MM fund to enable impact investors and tax equity investors to efficiently place capital in Alaska and the Arctic. 60Hertz’s Fund One will raise $10MM of private equity, to fund a project pipeline worth $33MM. We will raise between $500,000 and $2MM for our 2018 projects.
ENERGY INVESTMENT TRUST Model
The project finance fund provides take-out capital for microgrid assets and clean energy infrastructure to buy projects from engineering firms on behalf of communities or commercial sites. 60Hertz customers then repay the purchase via a loan. Alternately, customers sign an energy purchase agreement for Microgrid as a Service.. Assets include energy efficiency measures, wind turbines, solar panels, upgraded diesel generators, batteries, and control systems. Only proven technology will be deployed. Development partners to 60Hertz must offer a performance guarantee. Through a lease to own mechanism, villages will hold title to the microgrid assets, and make monthly “mortgage” payments on their microgrid during a term of approximately 12 years. Like a Real Estate Investment Trust (REIT), investors in the fund buy shares of an annual tranche of projects. This mitigates risk and offers investors a blended return. A mix of village and commercial microgrid sites (average of $3MM investment per site) plus smaller loans for specific clean energy infrastructure ($500K) compose annual investable tranches.
Investors in Fund One of 60Hertz's Project Finance Fund will enable remote communities to save money immediately on diesel and operating expenses. The impact is measurable: remote Alaskan communities pay the highest cost of power in the United States at $0.65/kWh — 4 times the national average. This cost of power radically increases residents’ cost of living, from groceries to heat to transportation. High energy costs are especially concerning given the lack of economic development in communities in which we work. Since 60Hertz is a social enterprise, investor return is slightly below market rates.
Investor risk is mitigated in four ways: each project within the fund is its own LLC; annual tranches are composed of a diversity of customers with different risk profiles; 60Hertz performs a thorough credit assessment using a multi-factor model before signing a community or commercial site to the project; and finally, maintenance risk is mitigated through our software tool deployed on every site.
investment in 60H corporation
Seed, angel, and venture capital investors interested in 60Hertz Corporation may send inquiries to Piper Foster Wilder, CEO, for a link to our investor Dropbox and to set up a conversation. 60Hertz is a social enterprise — achieving steady returns while accomplishing social benefit.