Cubit Power Systems sought financing to build and operate a cogeneration plant at a new manufacturing plant in Staten Island. The cogeneration plant will maximize the production of electricity to sell to the grid and, secondly, maximize the use of waste heat for on-site manufacturing purposes.
NYCEEC provided $6.3M of construction and permanent financing for the cogeneration project.
- Project type: Cogeneration
- Total project cost: $22.0M
- Financial product: Equipment loan
- NYCEEC role: $6.3M loan
THE CLIENT CHALLENGE
Cubit Power Systems sought flexible and cost-effective financing to build and operate a cogeneration plant at a new ice manufacturing plant in Staten Island.
Cubit Power Systems needed financing that could match the project’s complex construction schedule and bridge the timing of NYSERDA incentives.
THE NYCEEC SOLUTION
NYCEEC’s technical expertise and innovative financing solutions were key to structuring a loan that worked for Cubit Power Systems.
NYCEEC provided a $6.3M loan to fund the construction and operation of the cogen-powered ice plant – the first of its kind in New York. The loan has multiple draws to match construction milestones and also bridges NYSERDA incentives.
The cogeneration plant will maximize the production of electricity to sell energy to the grid to generate revenue. The plant will also maximize the use of waste heat for on-site ice manufacturing purposes. Income from the sale of the energy produced will be used to repay the NYCEEC loan.
NYCEEC’s loan turned Cubit’s cogeneration project into a reality
- Highly cost-efficient manufacturing plant
- Save 34% of the plant’s normal energy use and reduce its greenhouse gases by 12%
- Income from energy produced will repay the NYCEEC loan
- Construction could begin immediately because NYCEEC financed the NYSERDA incentives
- Cost effective and flexible project financing that matched a complex construction schedule
“In NYCEEC, we found a true partner. NYCEEC’s flexible financing and deep engineering expertise were instrumental to getting our project off the ground in a timely manner.”
– Leighton Powell | President, Cubit Power Systems