Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group, joined a US Government initiative to improve energy efficiency, emissions and energy resilience across the healthcare sector, with a focus on safety-net providers in economically disadvantaged communities. Macquarie Capital has committed to support up to $300 million in renewable energy project developments for hospitals and hospital systems designated as key priorities under the initiative.
Led by the White House Office of Clean Energy Innovation and Implementation in conjunction with the US Department of Health and Human Services, the initiative supports healthcare systems, investors and industry in leveraging grants and tax credits under the US Inflation Reduction Act (IRA) to finance and develop energy efficiency projects for critical healthcare hubs.
“As a developer of both energy and healthcare infrastructure, Macquarie Capital sees significant opportunity for projects in the safety-net healthcare space that can reduce energy costs and lower emissions while providing increased resiliency and attractive returns to investors,” said John Pickhaver, Macquarie Capital’s Head of Infrastructure & Energy Capital (IEC) for the Americas. “Macquarie’s commitment to this program will expand our portfolio of development activities to benefit communities across the United States.”
Healthcare facilities are increasingly seeking critical operational upgrades that improve the resiliency of their services while reducing their operating costs and emissions. On October 20, 2023, Macquarie Capital participated in a roundtable hosted by the White House and the US Department of Health and Human Services aimed at supporting the healthcare sector in leveraging the IRA. The roundtable addressed ways financial institutions, philanthropic organizations and industrial enterprises can help healthcare facilities achieve energy resilience by implementing on-site solar panels, microgrids, battery storage and backup generation with cleaner fuels, along with EV charging for vehicle fleets.
Macquarie Capital’s IEC team is currently supporting multiple energy projects for clients, including healthcare providers, such as its investment in FESCO Energy, an energy services business that designs, implements and advises financing projects that improve energy efficiency and reduce emissions while improving resiliency for customers. FESCO is currently delivering on more than $US50 million in private and public-sector healthcare projects, including a $US21 million solar, microgrid, EV charging, backup generation and other energy conservation-measure projects at Meritus Medical Center in Maryland, and a solar and energy resilience project for a prominent US Government healthcare entity. FESCO has a near-term pipeline of more than $US200 million of similar projects across multiple industry sectors.
The IRA has accelerated Macquarie Capital’s principal investment strategy in energy sectors such as renewable power, battery storage, EV charging, energy services and renewable natural gas (RNG). Macquarie Capital’s Aerogy platform develops, constructs and operates RNG projects from organic feedstocks. Macquarie Group’s other global businesses, Macquarie Asset Management (MAM) and Commodities and Global Markets (CGM), have a similar focus on investments and activities that leverage the IRA to support renewable energy and associated infrastructure, including helping clients and portfolio companies navigate IRA incentives to advance the energy transition.
MAM is active in investing in renewable energy generation, energy efficiency and resilient infrastructure across its portfolio of managed funds. MAM Green Investments, a specialist team within MAM, has a global development pipeline of more than 90 GW1 and is a global leader in the development of companies, assets and technologies that aim to accelerate the transition to net zero. In the US, these include Corio Generation, a specialist offshore wind developer; Atlas Agro, a green nitrogen fertilizer company; and Calibrant Energy, a joint venture with Siemens to finance and build distributed energy projects.
Macquarie’s CGM business draws on nearly two decades in energy markets and renewables to develop and deploy climate solutions that meet the needs of a diverse set of clients on their decarbonization pathways. Providing risk management, market access, physical execution, logistics and capital solutions, CGM supports carbon-intensive enterprises to decarbonize while they continue to deliver the vital services on which their communities rely.