Dive Brief:
- Independent renewable energy company MN8 Energy announced Monday it secured $325 million in funding through a private placement — a private stock sale to pre-selected investors — to grow and expand operations.
- Switzerland-based independent energy and commodities company Mercuria Energy invested $200 million, while New York-based investor Ridgewood Infrastructure invested $125 million. Both companies also received observer seats on the MN8’s board of directors and can convert their investments to common stock at a later date, per the press release.
- MN8 CEO and President Jon Yoder said in the press release that the move was intended to give the company the funding necessary for “tangible and measurable growth.” The deal’s closing will also create a strategic partnership between the three companies.
Dive Insight:
MN8 — which owns and operates the solar power generation, battery storage and electric vehicle charging infrastructure it installs for clients — spun off from Goldman Sachs Asset Management in 2022. The renewable energy company has since built a clientele that includes corporations like Coca-Cola, Walmart, Toyota and Chevron, as well as more than 135 government entities, educational institutions and utilities, according to MN8’s website.
The strategic partnership among MN8, Mercuria Energy and Ridgewood Infrastructure will focus on identifying commercial opportunities “aimed at advancing more sustainable, affordable, and reliable energy systems for the future,” according to the press release. MN8 said the partnership will capitalize on its renewable energy capabilities and Mercuria Energy’s understanding and expertise in energy markets.
“Our agreements with Mercuria and Ridgewood provide us with the financial means and capital to scale our growth, engineer innovative solutions for our clients and deliver enhanced value to our shareholders,” Yoder said in the release.
MN8 said it currently has a solar fleet with a capacity of 3.2 GW, made up of more 875 projects in 28 states, and battery storage projects with a combined 270 MW of capacity. In addition, the company partnered with Mercedes-Benz in 2023 to support the North American operations of the car manufacturer’s attempt to build a global EV charging network. Together the two companies have committed to invest more than $1 billion to build “North America’s fastest” EV charging network by 2030. The partnership finished its first U.S. charging hub in November, which opened at Mercedes-Benz’s U.S. headquarters in Sandy Springs, Georgia.