$18 Million 8 MW Cogen Biogas System Financed With C-PACE From CounterpointeSRE for Michigan Industrial Facility
JBS Foods USA’s use of Michigan’s C-PACE financing program demonstrates capacity fo C-PACE capital to support sustainability goals of large corporates.
GREENWICH, Conn. – Counterpointe Sustainable Real Estate (CounterpointeSRE) announced today it has provided Commercial Property Assessed Clean Energy (C-PACE) funding for an 8 MW cogeneration biogas system for a Gun Plain/Plainwell, MI., beef processing facility operated by JBS Foods USA, a subsidiary of leading global food company JBS.
“JBS Foods USA is committed to a more sustainable future, and the PACE financing from CounterpointeSRE will help us meet our commitment to achieve net zero greenhouse gas (GHG) emissions by 2040,” said Jim Mullin, head of energy procurement at JBS Foods USA. “By developing this biogas energy system, we are able to reduce our grid consumption, add resiliency to our site and reduce our carbon footprint.”
This industrial cogeneration project, designed and developed by Ally Energy, is an 8 MW (megawatt) biogas power generation system capable meeting 100% of the facility’s 41.3 million kWh electrical load to provide resiliency, reliability, and sustainability. The CAT genset (generator) will accept a blending of fuels from 100% biogas to 100% natural gas, allowing the plant to run in island mode or to accept power from the grid as needed.
“Because of Ally’s unique tariff expertise, we were able to identify maximum economic benefits,” stated Stephen Farrell, executive vice president at Ally Energy Solutions, the project developer. “The combination of the biogas tax credits, PACE funding, and peaker-plant operational strategy will deliver economics that far exceed what is customary for these types of projects,” he continued.
First-year utility savings are projected to be over $2.1 million with operations and management expenses included. Federal biogas ITC (investment tax credits), accelerated depreciation benefits, and cumulative energy savings yield a projected savings of almost $52 million over the next 20 years.
“We’re very pleased to align our financing behind such an impactful project from an energy and environmental perspective,” stated Eric Alini, Managing Partner at CounterpointeSRE. “This is a significant commitment by JBS to literally tap into an otherwise unutilized resource to the benefit of their bottom line, the environment, and the community.”
Beyond the economic benefits, the PACE-financed project is projected to reduce carbon emissions by an estimated 24.2 metric tons annually. The waste-to-energy system converts methane and other gases that would otherwise be released into the atmosphere into a clean, sustainable energy source that reduces greenhouse gas emissions by displacing the need for fossil fuels. Such benefits are among the core reasons Michigan’s C-PACE program was developed, as well as why markets such as Chicago, New York and states nationwide have adopted C-PACE programs in recent years.
JBS Foods is a diversified, global food company and the world’s largest processor of fresh beef and pork. The Plainwell facility has been in operation since 2018 and produces quality beef products enjoyed by consumers across the United States and around the world.
What is PACE financing:
PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing for energy efficiency, sustainability and renewable energy infrastructure deployed in new or existing buildings. The program is based on legislation that classifies certain sustainability and resiliency projects as a public benefit. These green infrastructure elements, along with associated soft costs and all related work, can be 100% financed with no outlay of capital. The financing is repaid as an operating expense through the property tax bill at fixed rates over a term that matches the useful life of improvements, up to 30 years in many states.
About Counterpointe Sustainable Real Estate:
Counterpointe Sustainable Real Estate (CounterpointeSRE) is the leading commercial real estate finance provider specializing in sustainable infrastructure improvements through PACE financing. Since 2013, Counterpointe and its affiliates have financed commercial real estate construction and upgrades that have reduced annual electricity consumption by greater than 51,000 MWh per year and reduced water consumption by 23 million gallons per year.