Public Private Partnerships
Public Private Partnerships are emerging as an important means of helping the US Military achieve its objectives in the areas of energy security and environmental sustainability.
The US Army, for example, will need approximately $7.1 billion over the next 10 years to meet its stated goals and federal mandates for installation level alternative and renewable energy projects. Competing for the limited funds available from Congress will be other projects, many of which will have higher priority. Given this situation, the US Army recognizes that if it is to be successful with large scale renewable energy projects, innovative private financing will eventually become a necessity.
The ITC Renewable team is currently engaged in a Public Private Partnership with the US Army to recover and delived shale derived biogenic methane gas to Fort Knox. For the Department of Defense (DoD) customer this partnership addresses two major issues. First, it eliminates the need to fund large capital intensive alternative energy projects using limited budgetary dollars. Second, it allows the services to attain energy goals quickly by leveraging the private sector to financing and construct cutting edge alternative energy plants as Contractor Owned Contractor Operated (COCO) facilities with the contractor (ITC-Renewable in this case) bearing the burden of the large upfront capital expenditures for construction.
To safe guard both the investment community and DoD large scale renewable energy projects must be meet strict criteria in terms of economic viability, appropriate and proven technology, and environmental responsibility. Ideally such projects would be capable of producing renewable energy at a cost competitive with conventional non-renewable sources. Simply stated, this means the sale of energy back to the installation must be business smart for both the investor and the government with both benefiting.
ITC Renewable has experience in both private debt and equity financing of renewable energy projects. We stand ready to discuss the design, engineering, construction, financing and operation of renewable energy projects involving recovery, delivery and conversion of shale gas and the generation of heat and power by gasification of renewable solid waste.