Last month, Generate announced a $200 million loan to reinforced steel producer Pacific Steel Group (PSG) that will help fund the construction of a new electric arc furnace micro mill in Kern County, CA (Bloomberg, Infralogic). Next week, construction for the project commences. As we prepare for the groundbreaking, we are exploring how the investment
Though popular, the tax credits were historically cumbersome and complicated, which kept capital on the sidelines. Project developers were required to use complex tax equity structures to monetize these tax benefits efficiently. Tax legislation and guidance led to the emergence of novel financial structures such as the partnership flip, the sale lease-back, and the inverted
The years of irrational exuberance are over but instead of despairing, we should be thankful for them. It allowed us to invent things we needed, to invest in things that wouldn’t have drawn investment, and to pass policies that have moved us forward materially. Much of what was invested in will survive in a more
The last three years have made for a crucible moment in the energy transition. The transition has seen incredible momentum, propelled by large capital commitments over the last decade, historic policy support and tons of steel in the ground in projects around the world generating energy from clean sources. Now, we’re entering a new year
Infrastructure investors with strong track records, specialized expertise, attractive returns, large pipelines, and operational and investment experience will continue to garner the backing of large investors and banks. Steel will still go in the ground to build the sustainable infrastructure assets that have created real economic value in communities across the country. The Policy Outlook
Looking ahead, to meet global climate targets, annual spending across energy, transport, and the built environment needs to increase fivefold through to 2030 (Figure 1). The required scale-up is even greater in areas like industrial processes where investment has yet to really get off the ground. The trillions of dollars of investment both decarbonize and transform
The journey from concept to commercialization for FOAK projects is challenging, but data-driven strategies can significantly reduce risk.