MegaProject 989: FC for Ohio state energy deal
- Axium Infrastructure
- ENGIE Group
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ENGIE and Axium Infrastructure have announced the financial close of a transaction to operate and maintain The Ohio State University’s utility system at the 485-building campus in Columbus, Ohio, one of the largest university campuses in the United States.
The consortium had announced in April, 2017 that the university’s Board of Trustees awarded the Axium-ENGIE consortium a 50-year concession to operate and optimize the university’s district energy system, including implementation of a comprehensive energy conservation program, with the objective of improving the university’s energy efficiency by at least 25% within 10 years.
In return for a 50-year lease, ENGIE-Axium would pay Ohio State a total value of US$1.165 billion, which includes a US$1.015 billion upfront payment to the university and a US$150 million commitment to support academics in specific areas requested by students, faculty and staff during the bidding process.
The concession also includes the construction of a new Energy Advancement and Innovation Center for energy research and commercialization. The Center will create a living laboratory where faculty, students, alumni, entrepreneurs, industry experts, and ENGIE researchers can collaborate on next-generation technologies and services in areas such as smart energy systems, renewable energy, and green mobility.
Frank Demaille, CEO of ENGIE North America, said:
“Financial close of this 50-year concession is a milestone in a truly groundbreaking partnership. ENGIE, together with Axium, looks forward to advancing new possibilities with the Ohio State community, from improving ways to heat, cool, and power the campus to collaborating on potentially transformational technologies and services that someday could be shared far beyond Columbus.”
Thierry Vandal, President of Axium Infrastructure US, stated:
“Axium is thrilled to have established and now closed a first-of-its-kind, long-term energy management partnership with The Ohio State University. We believe that the Axium-ENGIE consortium can deliver world class operations as well as the implementation of a 21st century sustainability program at Ohio State’s Columbus campus. This investment is a landmark transaction in the infrastructure industry and a great addition to our existing North American portfolio of over 60 core energy, transportation and social infrastructure assets.”