SJI Forms Renewables Joint Venture with Captona to Pursue Clean Energy Initiatives; Announces Fuel Cell Projects

Rhea-AI Summary

SJI announces the formation of Catamaran Renewables, a joint venture with Captona for renewable energy projects. The venture aims to leverage over 1.3 GW of operational experience from Captona, which has financed over $1 billion in renewable transactions. As part of this initiative, SJI acquired two fuel cell projects on Staten Island, totaling 7.5 MW, secured with long-term agreements. With 93% project ownership, SJI will receive a significant share of cash flows and tax incentives. The projects are expected to be operational by October 2020.

Positive

• Formation of the Catamaran Renewables joint venture with Captona to expand renewable energy initiatives.
• Acquisition of two fuel cell projects in Staten Island, expected to generate stable revenue from long-term agreements.
• SJI will own 93% of the projects, receiving a majority share of cash flows and tax incentives.

Negative

• None.

FOLSOM, Aug. 24, 2020 (GLOBE NEWSWIRE) --                                                                                                 Media Contact:  Marissa Travaline
(609) 561-9000 ext. 4227
mtravaline@sjindustries.com

                                                                                                          Investor Contact: Dan Fidell
(609) 561-9000 ext. 7027
dfidell@sjindustries.com

FOR IMMEDIATE RELEASE

SJI Forms Renewables Joint Venture with Captona to Pursue Clean Energy Initiatives; Announces Fuel Cell Projects

FOLSOM, NJ, August 24, 2020 – SJI (NYSE: SJI) remains committed to clean energy initiatives in support of the goals of our region. Consistent with this commitment, we are excited to announce today the formation of Catamaran Renewables (Catamaran), a joint venture between SJI subsidiary Marina Energy and renewable industry-leader Captona, to develop, own and operate renewable energy projects.

Captona is an expert in the development, ownership and operation of renewable projects. Collectively, the new Catamaran joint venture brings more than 1.3 GW of operational experience across all types of renewable energy and has financed more than $1 billion in renewable energy transactions.

In conjunction with the formation of Catamaran, the partners announced today the acquisition of two fuel cell projects in Staten Island, New York totaling 7.5 MW from NineDot Energy, an experienced renewable development company based in the NYU Urban Future Lab cleantech incubator in Brooklyn, NY. These late-stage development projects, located along the southern portion of Staten Island, have all secured permits and interconnection rights and are supported by long-term offtake agreements with two creditworthy anchor customers.

The projects are currently under construction and scheduled to be placed into service in October 2020. Marina will own 93% of the project and accordingly, receive 93% of the ITC, cash flows and net income associated with the project. The projects qualify under New York’s Value of Distributed Energy Resources (VDER) program, and 75% of project revenues will be fixed.

“We look forward to building on our proven track record of strategic energy investments by establishing Catamaran Renewables with Captona” said Mike Renna, SJI president and chief executive officer. “Through Catamaran, we will further our strategy pursuing decarbonization initiatives – making measured and strategic investments in quality projects with strong counterparties and offtake agreements and positive long-term returns. Our fuel cell project aligns with this strategy, and when combined with previous investments and projects under construction at our facilities, satisfies our renewable energy goals for 2020.”

Please visit catamaranrenewables.com for more information

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About SJI

SJI (NYSE: SJI), an energy services holding company based in Folsom, NJ, delivers energy services to its customers through three primary subsidiaries. SJI Utilities, SJI’s regulated natural gas utility business, delivers safe, reliable, affordable natural gas to approximately 700,000 South Jersey Gas and Elizabethtown Gas customers in New Jersey. SJI’s non-utility businesses within South Jersey Energy Solutions promote efficiency, clean technology and renewable energy by providing customized wholesale commodity marketing and fuel management services; and developing, owning and operating on-site energy production facilities. SJI Midstream houses the company’s interest in the PennEast Pipeline Project. Visit sjindustries.com for more information about SJI and its subsidiaries.

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FAQ

What is the purpose of SJI's joint venture with Captona?

The joint venture, Catamaran Renewables, aims to develop, own, and operate renewable energy projects.

What are the details of the fuel cell projects acquired by SJI?

SJI acquired two fuel cell projects in Staten Island totaling 7.5 MW, secured with long-term agreements and expected to be operational by October 2020.

How much operational experience does Captona bring to the joint venture?

Captona brings over 1.3 GW of operational experience and has financed more than $1 billion in renewable energy transactions.

How will SJI benefit from its ownership in the new projects?

SJI will own 93% of the projects and receive 93% of the associated cash flows and tax incentives.