Creating a new benchmark for renewable energy expansion in Texas, Nexus Renewable Power and Bad Carbon have announced a $100 million equity investment capitalizing Geologic Environmental Mineral Sequestration (GEMS) credits.
Built to fund new renewable energy projects, this multi-impact climate capital solution aligns with long-term climate goals and accelerates measurable contributions to energy security. And the funding will accelerate the development of solar and battery energy storage systems (BESS) on the ERCOT grid, with increased renewable energy capacity expected as early as late 2025 and continued progress toward critical milestones through 2027.
This equity investment complements the $300 million portfolio-level debt facility provided by certain funds and accounts managed by HPS Investment Partners, which closed in November 2024.
These investments together enable the expansion of new renewable infrastructure with a projected lifetime output exceeding 45,000 GWh and sequestering more than 3 million barrels of oil equivalent (BOE), resulting in an immediate reduction in GHG emissions. Plus, these initiatives strengthen energy independence and economic growth while supporting long-term sustainability. By providing capital-efficient energy solutions, these investments enhance grid reliability, drive innovation, and contribute to a stable and resilient energy future.
The deal was securely recorded and managed using The Northern Trust Carbon Ecosystem, a digital platform for the end-to-end lifecycle management of digital voluntary carbon credits leveraging private ledger digital blockchain technology.
Advising on the deal, the Faegre Drinker team is committed to supporting this and other impact-driven transactions that address transparency, accountability, and the digitalization of carbon commodities markets.
This agreement validates a commitment to deploying capital as a measurable driver of energy market expansion and long-term stability. And as a first-of-its-kind investment, it establishes a framework where financial value is directly linked to accelerating clean energy growth, enhancing grid resilience, and strengthening domestic energy resources. This initiative paves the way for a more stable and prosperous energy future by aligning economic returns with energy security and sustainability.
The transactional counsel included Sidley Austin for Nexus and Baker McKenzie for BadCarbon.
KEY QUOTES:
“This investment exemplifies how GEMS initiatives unite market competition and innovative capital deployment to deliver scalable, cost-effective energy solutions with measurable impacts. With Nexus, we are actively shaping a future built on preservation and accelerating economic opportunities that establish the foundation for long-term energy prosperity.”
– Benny Barton, Executive Manager of BadCarbon
“The support from BadCarbon and HPS Investment Partners provides Nexus with the financial flexibility to execute our near-term growth strategy. With these projects, we are advancing renewable energy on the ERCOT grid and contributing to meaningful emissions reductions.”
– Sargon Daniel, CEO of Nexus Renewable Power
“The BadCarbon collaboration establishes an effective benchmark for credible, market-driven energy strategies. Innovative projects like this create meaningful opportunities for the energy and commodities markets to strengthen resource security and deliver measurable energy benefits.”
– Deanna Reitman, Partner and Co-Leader of the Energy Transactions Team law firm Faegre Drinker
