FES is pleased to announce that it has secured a joint venture partnership with SDCL Energy Efficiency Income Trust plc ("SEEIT"), providing a loan of approximately $21 million to expand FES alongside its existing operational portfolio of LED projects across 42 states in the United States.
FES provides energy efficient lighting solutions to enterprises across the US, in exchange for fixed monthly payments, using an innovative Lighting as a Service model. Services include designing, installing, financing, and maintaining LED lighting for counterparties to save on energy and maintenance costs as part of a long- term partnership with our customers.
FES's operational portfolio consists of over 1,000 customers from a variety of sectors, including schools, hotels, retail outlets, car parks, car dealerships, supermarkets, and casual dining, among others. FES's customer base consists mostly of small and medium sized enterprises. FES has an established management team, with an extensive pipeline of opportunities in the US supported by a sales force with a strong track record.
The investment aligns well with SEEIT's investment policy, given its strong energy efficiency characteristics. LED lighting systems typically produce 100,000+ hours of illumination and consume up to 90% less energy than traditional incandescent light bulbs, leading to greatly reduced energy expenditures for users. The associated environmental benefits include a significant reduction in CO2 emissions relative to traditional lighting technology, as well as longer lighting life span of the bulbs, leading to lower overall waste.
Commenting on the investment, Peter Hawksworth, CEO of Future Energy Solutions, said: "Partnering with SEEIT in the USA and Europe, allows FES to grow across all our areas of expertise and use the Lighting as a Service model to influence and achieve positive change in business sectors, where our customers can make significant and instant savings alongside a reduction in carbon footprint and simplify their operational performance."
Commenting on the investment, Jonathan Maxwell, CEO of Sustainable Development Capital LLP, said: "Switching to LED lighting is one of the simplest and most readily available changes that can be made to reduce CO2 emissions. Lighting accounts for nearly 5% of global CO2 emissions. LED lighting can achieve energy savings of up to 90% in comparison to traditional lighting, benefitting the environment and reducing costs for business. We expect the 'Lighting as a Service' market to grow considerably in the coming years, in both the US and Europe, and this presents a very attractive investment opportunity for SEEIT that meets its yield and returns targets.''
About Future Energy Solutions
FES is an innovative global green technology company that provides funded and capital purchase lighting solutions for large scale commercial and industrial businesses. The FES service includes surveying, designing, analysing, procuring, project managing, installing, and maintaining new energy efficient lighting systems. Formed in 2009 in the United States, FES has grown into a family of companies around the globe. The UK office opened in April 2013 and has since installed over 300,000 energy efficient luminaries across several client portfolios, with an additional presence in the United Kingdom and Europe.
SDCL Energy Efficiency Income Trust plc is a constituent of the FTSE 250 index. It was the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of commercial and industrial solar and storage projects in the United States, a regulated gas distribution network in Sweden and a district energy system providing essential and efficient utility services on one of the largest business parks in the United States.
SOURCE Future Energy Solutions