OSU selects partner for energy management in $1.165 billion deal

Ohio State University (OSU) trustees recently approved “a $1.165 billion deal to hand its energy systems over to a private company,” Gongwer Ohio reports. The 50-year lease of the university’s energy systems management was awarded to ENGIE North America and Axium Infrastructure, one of three teams that made it to the final round of bidding on the project (see our March 24, 2017 blog post). Gongwer reports that “[i]n addition to that upfront $1 billion payment, the deal includes a $150 million commitment to specific academic areas and the creation of a $50 million Energy Advancement and Innovation Center.” OSU’s annual costs will include a “$45 million fixed fee to rise with inflation, a $9.2 million starting operating fee and a variable fee tied to capital investments.” 

Energy Efficiency, Project Finance, Sustainability