EIG and Modern Energy Announce a $90 Million Investment in Industrial Sun

Capital supports the growth of Net-metered Industrial Solar in Texas’ ERCOT market

WASHINGTON, D.C., AUSTIN, T.X. & DURHAM, N.C. (February 28, 2023) – EIG, a leading institutional investor in the global energy and infrastructure sectors, and diversified clean energy company Modern Energy announced today a $90 million investment in Industrial Sun, a Modern Energy company and developer of large-scale solar projects for power sale to industrial clients in Texas’ ERCOT energy market. This investment aligns with EIG's strategy of supporting projects and companies that drive the transition from fossil fuels to more sustainable energy sources on a global scale.

"We are excited to partner with Industrial Sun and join forces with their talented team," said Andrew Ellenbogen, Managing Director at EIG. "We have been impressed by their strong track record, innovative business model, and the opportunity they have created to generate significant value for their customers. This investment allows us to deepen our relationship with Modern Energy and participate in the scaling of a promising clean energy platform."

EIG and Modern Energy announced a partnership in July 2020, in which EIG committed $100 million to Modern Energy through a debt facility to fund the development of clean energy assets. Modern Energy also previously committed $30 million to launch Industrial Sun in November 2021.

“Our utility-scale solar projects help our ERCOT customers save millions of dollars at the facility level without any capital expense required," said Wade Gungoll, CEO at Industrial Sun. "Our solution delivers the lowest net cost of power available in the United States, making it a true win-win-win opportunity for everyone involved. In fact, our offering is so compelling that any high-demand energy user should consider locating its facilities in ERCOT over any other location."

"We are selective with our partners, and bringing EIG into the mix will only accelerate our growth and help us capitalize on our mission to bring net-metered industrial solar to market," Gungoll added.

With the investment, Modern Energy will continue to manage and provide a range of services to support Industrial Sun’s growth. "This transaction reflects Modern Energy’s approach to partnering with great leaders of early-stage clean energy businesses. We deliver development capital, business-building capabilities, and expertise that accelerate growth. Industrial Sun was a brand new company 15 months ago and now it is capitalized to execute on gigawatts of pipeline opportunities that will further the energy transition,” said Chris Hamilton, Chief Investment Officer at Modern Energy.

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About EIG

EIG is a leading institutional investor in the global energy and infrastructure sectors with $22.7 billion under management as of December 31, 2022. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 40-year history, EIG has committed $44.6 billion in 396 projects or companies in 42 countries on six continents.  EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.  

About Modern Energy

Modern Energy® is a diversified clean energy company that invests in, builds, and operates energy transition businesses to drive progress toward a net-zero carbon economy. Our portfolio includes platforms that deliver distributed energy solutions to customers in the United States and Brazil. Using our unique Capital + Capabilities + Culture model, we empower early-stage energy development companies to reach their full potential. With offices in Durham, NC, Austin, TX, and Sao Paulo, Brazil, Modern Energy® is a certified B-Corp with a mission to make affordable, reliable, sustainable energy for all. To learn more, please visit our website at www.modern.energy.

About Industrial Sun

Industrial Sun is a renewable energy and storage developer, purpose-built to serve industrial and high energy demand customers, including refineries, pumping and compression stations, manufacturing and/or processing plants, terminals, and data centers. Our development team works with project landowners and surrounding communities to responsibly develop power projects that support the success of local communities for generations to come. Industrial Sun’s senior team possesses a wealth of collective renewable energy experience and expertise in project development, power sale, and financing. For more information, visit www.industrialsun.com.