Today, Georgetown Energy Partners (GEP) achieved financial close with Georgetown University through a long-term comprehensive energy management partnership. Worth noting, GEP is an entity owned by ENGIE North America and Axium Infrastructure (Axium).
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About the agreement
Therefore, under the terms of the 50- year agreement, GEP has assumed sole responsibility to operate, maintain, and modernize the University’s utility system. Therefore, these activities will comprehend the management of steam, chilled water, power, and domestic water for their main campus location; and also, for downtown law center facilities.
Particularly, this long-term agreement will help accelerate and actualize the University’s ambitious sustainability goals, a media release reads. Indeed, these targets include a 35 percent overall reduction in energy use intensity. Besides, they encourage the University to achieve carbon-neutral status by 2030; particularly, by leveraging innovative energy solutions and modernization of the existing utility infrastructure.
Worth noting, Société Générale S.A, acted as Financial Advisor and Lead Arranger for ENGIE. Additionally, Allen & Overy LLP served as lead counsel for the company. Lastly, for Georgetown University, Barclays acted as financial advisor, Jones Day as legal advisor, and Arup as technical advisor.
In fact, and according to what ENGIE shared in a media release, this 50-year partnership with globally-renowned Georgetown University is remarkable. Besides, it is the latest example of institutions turning to a partnership model with clean energy companies; particularly, to manage and operate energy infrastructure upgrades.
ENGIE and Axium supporting universities’ grids
On the other hand, over the last three years, ENGIE North America has implemented successful energy concession partnerships with other universities. For instance, the Ohio State University and the University of Iowa.
Indeed, ENGIE North America recently announced its new collaboration with Howard University for a 20-year agreement. Accordingly, this deal included managing the design, construction, operation, and maintenance of a new central utility plant on campus.
Similarly, Axium has a successful track record of investing in critical infrastructure assets on University and corporate campuses throughout the US. Moreover, Axium has a long history in developing long-term on-campus housing partnerships with several leading Universities in the US.
Reception and comments
In this sense, Stefaan Sercu, Managing Director Energy Solutions Americas at ENGIE, commented; “The ENGIE team is proud to recognize the final transfer of Georgetown University’s utility system to management; particularly, under the unified Georgetown Energy Partners group this week.”
In fact, “our partnership with Georgetown builds off of a successful track record of the University’s long-term commitment to sustainability,” Sercu continued. Thus, “through measurable infrastructure upgrades, impactful renewable generation goals, and integrated academic leadership;” the company promotes interdisciplinary solutions to the climate crisis.
Lastly, Sercu added that ENGIE “looking forward to shaping new opportunities together that accelerate the campus community’s transition to a carbon-neutral future.”
Similarly, Thierry Vandal, President of Axium Infrastructure US Inc., commented; “Axium is thrilled to join the extraordinary community at Georgetown University and to partner once again with ENGIE.” Therefore, “we look forward to supporting Georgetown in meeting its campus sustainability goals and carbon neutrality objective.”
