ENERGY STORAGE

New York storage developer NineDot Energy secures $225m in equity capital

January 11, 2024

New York City community-scale battery energy storage systems (BESS) developer NineDot Energy has secured an additional $225 million equity capital commitment from Manulife Investment Management and existing investor Carlyle.

Manulife Investment Management led the round with a $135 million commitment and concurrently acquired an equity interest. This new equity funding is “expected to allow NineDot to advance its substantial project pipeline in the New York City area and to expand geographically as well as potentially through acquisitions”, a NineDot statement said.

When combined with existing project financings from CIT, SMBC, and NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA), among others, NineDot has now secured a capital base of approximately $400 million.

David Arfin, NineDot Energy CEO and co-founder, said: “From our first meeting it was clear that Manulife IM understood the importance of battery storage in modernising the urban electric grid, making it cleaner, more resilient, more equitable, and less costly. Having Manulife Investment Management and Carlyle – two of the world’s leading infrastructure investors – in our corner will truly energise NineDot’s future.”

Recep Kendircioglu, global head of infrastructure, Manulife Investment Management, said: “We have been believers in community-scale battery storage for a long time and are pleased to form a long-term equity partnership with NineDot Energy. We view NineDot as the leading BESS developer in a complex but attractive market. We look forward to supporting the team at NineDot as it executes on its growth pipeline in New York and scales its business.”

Pooja Goyal, chief investment officer at Carlyle’s Infrastructure Group, added: ““When we first backed NineDot in 2021, we recognised they had a unique strategy to support New York’s energy transition. Over the past two years we’ve worked closely with them as they’ve experienced tremendous success building out their platform and project pipeline. We look forward to partnering with Manulife Investment Management, providing further support to the NineDot team as they pursue their ambitious goals.”

As part of the transaction, Christopher McKenzie, a managing director on Manulife Investment Management’s infrastructure team, will join NineDot’s board of directors.