#United States #Kimmeridge #Sausalito #38 Degrees North #Climate Adaptive Infrastructure

38 Degrees North: A New Chapter in Sustainable Energy Investment

In a significant move to enhance its footprint in the renewable energy market, 38 Degrees North, a leading community solar and distributed renewable energy platform, has announced that it has successfully raised over $230 million in growth capital. This funding comes through strategic investments from Climate Adaptive Infrastructure (CAI) and Kimmeridge Energy Management Company, LLC, two influential players in the energy sector focused on sustainability and decarbonization.

A Strategic Investment for a Sustainable Future

The recent investment is expected to dramatically accelerate 38 Degrees North's ongoing projects, allowing the company to rapidly respond to escalating electricity demands across the United States. As projections indicate that U.S. electricity demand could increase significantly—by 25% by 2030 and as much as 78% by 2050—the need for innovative and sustainable energy solutions has never been more critical.

Founded in 2015, 38 Degrees North specializes in the development of distributed generation and community solar projects. With a proven track record of handling over 400 megawatts (MW) of energy projects, the firm is well-positioned to meet the energy demands of a growing population. The latest infusion of capital is complemented by the acquisition of U.S. Light Energy, a project developer backed by Kimmeridge, which brings an impressive pipeline of over 250 MW of additional projects.

Adapting to Market Needs and Challenges

According to the founders of 38 Degrees North, the accelerating demand for energy, particularly from sectors like artificial intelligence and electrified transportation, reflects the necessity for local clean energy projects. They believe that these initiatives can provide substantial savings for homeowners and small businesses. The support from CAI and Kimmeridge is seen as instrumental in unlocking new opportunities and partnerships, crucial for expanding their market reach.

Bill Green of CAI emphasizes the importance of this investment, noting the macro trends that are reshaping the energy landscape. As power demands increase and the stability of the traditional grid becomes a concern, distributed generation is emerging as a vital component in the transition to a sustainable energy future.

A Comprehensive Approach to Renewable Energy

38 Degrees North is not just about meeting current demands; it’s about fostering sustainable practices that can withstand market fluctuations. The team, consisting of experienced partners who have previously managed over 5 gigawatts (GW) of renewable projects, has developed a strategic approach that integrates various forms of energy generation. This adaptability positions them to navigate and capitalize on the complex regulatory and geographic landscape of the energy market.

The legal aspects of the capital raise and acquisition have been managed by Norton Rose Fulbright, while Kirkland & Ellis LLP and Foley & Lardner LLP represented CAI and Kimmeridge, respectively, in the deal-making process. These collaborations underline the seriousness with which 38 Degrees North undertakes its expansion into new and existing markets.

A Vision for Sustainable Infrastructure

As the company continues to grow, the commitment to delivering sustainable infrastructure solutions remains at the forefront of its mission. This strategic capital raise signifies not only a boost in financial capacity but also validates the innovative strategies employed by 38 Degrees North in the competitive energy sector.

In conclusion, 38 Degrees North stands as a beacon of progress in the renewable energy landscape. With strong backing from influential investors and a clear vision for the future, the company is poised to make significant contributions to the evolving energy sector, helping communities transition towards cleaner and more efficient energy solutions.