Scale Microgrids Shifting Gears into 9.6-MW CHP Gas-to-H2 Fuel Cell Project for Bridgeport, Conn.
Scale Microgrids is diving into a new technology front by acquiring a future combined heat and power (CHP) fuel cell power project planned for Connecticut’s biggest city.
The microgrid developer is buying a 9.6-MW CHP and fuel cell project which will provide heat and power in Bridgeport’s South End region. The fuel cells will be paired with a thermal loop system and will convert natural gas into hydrogen through steam reforming of methane gas and then generate combustion-free electricity through the fuel cell’s electrochemical process.
Scale Microgrids acquired the CHP fuel cell power system preconstruction from original developer NuPower. HyAxiom will fabricate, install and operate the hydrogen fuel cells.
Scale will handle financing, construction, operations and ownership over the lifetime of the Charter Oak CHP project in Bridgeport. The microgrid firm was recently acquired by EGT Transition Infrastructure.
“This project is a terrific opportunity to deploy innovative clean energy technology to drive economic, reliability and sustainability outcomes in Bridgeport,” said Julian Torres, chief investment officer at New Jersey-based Scale Microgrids, in a statement. “We’re also proud to work with great in-state companies like NuPower and HyAxiom as we continue to expand our footprint in Connecticut more broadly.”
The transition is supported with debt financing from Investec and MUFG, while Foss & Co. is providing tax equity. No financial terms were released.
"We are proud to support Scale Microgrids in this transformative project, which not only enhances local energy reliability but also underscores our commitment to advancing clean energy solutions that benefit communities and the environment,” Fred Petit, co-head of Energy and Infrastructure Finance North America at Investec, said in a statement.
The Charter Oak project in Bridgeport has been in development for about 10 years, according to reports. The thermal loop will supply heat and hot water for the University of Bridgeport (pictured), Approved Storage and Waste Hauling, and Bassick High School, reducing their operating costs and enabling them to cut their greenhouse gas emissions by a combined 8,000 metric tons per year.
The reliability of the United Illuminating electricity grid should also be enhanced from the locally produced baseload power. Bridgeport is Connecticut’s largest city with about 150,000 residents.
Scale was founded in the 2010s as a startup focused on microgrid development for commercial customers. Early this year, global investment firm EGT announced that its new Transition Infrastructure unit was acquiring Scale Microgrid, which had previously gained financing from Warburg Pincus.
In recent years, the microgrid startup announced it was shifting part of its focus into community solar projects.