ANNAPOLIS, Md., Oct. 3, 2013 /PRNewswire/ -- Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong") (NYSE: HASI), a leading provider of debt and equity financing for sustainable infrastructure projects, announced that it is providing the underlying funding for nearly $27 million in energy efficiency upgrades to government buildings across the city of Louisville, KY.
The city of Louisville has signed an agreement with Johnson Controls, a global leader in building efficiency, to make various improvements including lighting upgrades and replacement of large pieces of outdated, inefficient equipment such as chillers and boilers.
Johnson Controls, working with Hannon Armstrong, will fund the upfront cost of the upgrades. Louisville Metro Government, in turn, will make payments on the project through a performance contract, in which energy savings from the building improvements are guaranteed to pay for the work over 23 years.
"This is one of the most innovative partnerships between Johnson Controls and a city government in the United States," said Louisville Mayor, Greg Fischer.
"This unique approach is a great deal for taxpayers to make much-needed improvements to our many older buildings," Fischer said. "In addition, this project will make our city government more sustainable and help us significantly cut carbon emissions."
The project is projected to:
- Reduce yearly carbon emissions by more than 12,000 tons. That's equivalent to the carbon impact of nearly 26,000 homes;
- Result in $2 million in energy and operational savings year over year -- a savings that will continue once the payments to Johnson Controls are made in full.
Some of the planned improvements include:
- New boilers and power systems for City Hall;
- New chillers and electrical upgrades at the Youth Detention Center, new boilers at Metro Corrections
- New boiler cooling tower at Public Health and Wellness;
- New boilers and condensing units at the Southwest Government Center;
- Numerous electrical and other upgrades at the Louisville Zoo;
- New HVAC system at the Mary T. Meagher Aquatic Center.
"City government could not afford, on its own, to pay for these upgrades," Mayor Fischer said. "This unique public-private partnership shows what happens when people approach old problems with new ideas and new ways of thinking."
About Hannon Armstrong
Hannon Armstrong makes debt and equity investments in sustainable infrastructure projects. We focus on profitable projects that increase energy efficiency, provide cleaner energy, positively impact the environment or make more efficient use of natural resources. We began our business more than 30 years ago, and since 2000, using our direct origination platform, we have provided or arranged over $4.0 billion of financing in more than 450 sustainable infrastructure transactions. Hannon Armstrong targets projects that have high credit quality obligors, fully contracted revenue streams and inherent economic value.
Hannon Armstrong Sustainable Infrastructure Capital, Inc., based in Annapolis, MD, has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. Investor Relations Inquiries: Investors@hannonarmstrong.com 410-571-6189
SOURCE Hannon Armstrong Sustainable Infrastructure Capital, Inc.