Climate Impact Equity accelerates solar and BESS development, advancing energy Prosperity.
DALLAS–(BUSINESS WIRE)–Setting a new benchmark for renewable energy expansion in Texas, Nexus Renewable Power, LLC (“Nexus”) and Bad Carbon, LLC (“BadCarbon”) have announced a $100 million equity investment capitalizing Geologic Environmental Mineral Sequestration (GEMS™) credits. Designed 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. The investment 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, LLC, which closed in November 2024. Together, these investments enable the expansion of new renewable infrastructure with a projected lifetime output exceeding 45,000 GWh and sequester more than 3 million barrels of oil equivalent (BOE), resulting in an immediate reduction in GHG emissions. 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.
“This investment exemplifies how GEMS™ initiatives unite market competition and innovative capital deployment to deliver scalable, cost-effective energy solutions with measurable impacts,” said Benny Barton, Executive Manager of BadCarbon. “With Nexus, we are actively shaping a future built on preservation and accelerating economic opportunities that establish the foundation for long-term energy prosperity.”
“The support from BadCarbon and HPS Investment Partners provides Nexus with the financial flexibility to execute our near-term growth strategy,” said Sargon Daniel, CEO of Nexus Renewable Power. “With these projects, we are advancing renewable energy on the ERCOT grid and contributing to meaningful emissions reductions.”
The transaction 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 transaction, 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. “The BadCarbon collaboration establishes an effective benchmark for credible, market-driven energy strategies,” said Deanna Reitman, Partner and Co-Leader of the Energy Transactions Team law firm Faegre Drinker. “Innovative projects like this create meaningful opportunities for the energy and commodities markets to strengthen resource security and deliver measurable energy benefits.”
This agreement underscores a commitment to deploying capital as a measurable driver of energy market expansion and long-term stability. 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.
Transactional counsel included Sidley Austin LLP for Nexus and Baker McKenzie LLP for BadCarbon.
About Nexus Renewable Power:
Nexus is a Texas-based company that develops, finances, and operates solar and energy storage assets. With a lean organization, Nexus takes a targeted development approach and is currently constructing two solar + BESS facilities in ERCOT with a strategic, targeted series of projects slated for development and construction thereafter. For more information, please visit https://nrenew.com/
About BadCarbon:
BadCarbon is a Texas-based asset manager focused on leveraging the proprietary Geologic Environmental Mineral Sequestration methodology (GEMS™) and its Hydrocarbon Avoided Conversion (HAC) credit inventory for renewable asset investments. The scalable BadCarbon strategy Fueling Tomorrow delivers immediate, measurable results by funding renewable development. Multi-impact climate equity fast-tracks early-stage renewable projects and scales critical infrastructure, strategically positioning us to accelerate energy prosperity with a durable impact. For more information, please visit https://badcarbon.com/
About HPS Investment Partners:
HPS is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions to generate attractive risk-adjusted returns for our clients. HPS manages various strategies across the capital structure, including privately negotiated senior debt, junior capital solutions in debt, preferred equity, and equity formats; liquid credit, syndicated leveraged loans, collateralized loan obligations, and high yield bonds; asset-based finance and real estate. The scale and breadth of HPS’s platform offer the flexibility to invest in large and small companies through standard or customized solutions. HPS has approximately $148 billion of assets under management as of September 2024. For more information, please visit www.hpspartners.com
About Faegre Drinker Biddle and Reath LLP:
Faegre Drinker Biddle and Reath LLP recognize the importance of being at the forefront of this dynamic technological advance and are committed to assisting clients with developing the energy, sustainable and carbon commodities markets. By advising clients on innovative and technological solutions that advance global sustainability goals and resource security, Faegre Drinker Biddle and Reath LLP lawyers are at the forefront of assisting in creating carbon and environmental assets, platforms, registries, marketplaces, and exchanges. For more information, please visit https://www.faegredrinker.com.
About The Northern Trust Carbon Ecosystem™:
The Northern Trust Carbon Ecosystem™, offered through The Northern Trust Company in Chicago, is a fully digital carbon ecosystem for the end-to-end lifecycle management of digital voluntary carbon credits. Powered by the Northern Trust Matrix Zenith™ digital assets platform, it offers secure and transparent lifecycle management of voluntary carbon credit transactions. The Northern Trust Carbon Ecosystem is owned and managed by Northern Trust, one of the world’s leading providers of wealth management, asset servicing, asset management, and banking. It has a global presence with offices in 24 U.S. states and Washington D.C. and 22 locations in Canada, Europe, the Middle East, and Asia-Pacific. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity, and innovation. For more information, please visit northerntrust.com/carbon-ecosystem.
Contacts
Benny Barton, Executive Manager
Benny.Barton@BadCarbon.com
945-227-8335
