Flagstaff, AZ November 17, 2021 --(PR.com)-- Navajo Power, a majority Native-owned Public Benefit Corporation that develops utility-scale clean energy projects on Tribal lands, announced it has secured a $3 million program-related investment (PRI) from the W.K. Kellogg Foundation (WKKF). This investment contributes to the $9.5 million currently raised for an Impact Loan Facility that will be used to further Navajo Power’s mission to develop more than $3 billion of clean energy infrastructure in Tribal communities by 2030.
“Tribal nations are on the frontlines of the clean energy transition, having suffered disproportionately by detrimental health, environmental and economic impacts,” said Brett Isaac, Co-Founder and Executive Chairman of Navajo Power. “This latest fundraising round will help us ensure that Native communities not only recover, but are the prioritized beneficiaries and stewards of the clean energy revolution.”
Navajo Power enables Tribal communities to maximize the economic benefits of clean energy. Navajo Power obtains all agreements, permits, entitlements, and approvals necessary to build, finance, and operate such projects for 20+ years. Navajo Power’s main focus in project development is prioritizing the needs of the Tribal communities where it is working, including taking into account traditional practices and uses of the land when siting and designing projects. Navajo Power works proactively to create opportunities for Tribal members to participate in the financing, development and operation of the projects and thereby benefit directly from the jobs, revenue and electricity the projects create.
“The clean energy economy is a rapidly growing and very important opportunity for Tribes, but it is complex and shaded by past experience with fossil fuels,” said Clara Pratte, Co-Founder and Managing Director of Navajo Power, “That is why Navajo Power devotes so much time, resources and technical expertise to Tribal governments, so we can help guide the creation of policies and regulations that maximize the opportunity for clean energy development while also preserving tribal sovereignty and the rights of local stakeholders.”
For the past three years, Navajo Power worked to build an economic model that centered on the community. Natasha Hale, program officer for New Mexico programs at the W.K. Kellogg Foundation said, “This innovative model and approach by Navajo Power is creating a new energy development value chain that boosts economic benefits and leverages cultural assets at the community level, develops large-scale renewable energy projects with Navajo and other New Mexico communities, and partners with investors to address the market gap for energy development finance.
WKKF joins a circle of leading impact investors and philanthropic organizations in the loan facility. The Candide Group served as the anchor investor and helped design and set terms for the innovative Loan Facility. Other notable institutions include the Navajo Community Development Financial Institution, the Schmidt Foundation, Grove Foundation, Sierra Club Foundation, Catena Foundation, Wallace Global Fund and Halloran Philanthropies, as well as a number of angel investors.
This investment builds on the Kellogg Foundation’s resolve to shift the paradigm in the capital markets to channel resources to entrepreneurs and communities of color.
“Navajo Power’s approach is attractive because local Native community interests and benefits are centered in the core business model, with strong reinvestment into the development of future projects,” said Susie Lee, program related investments officer at the W.K. Kellogg Foundation. “It was important for us to take on equity risk but structure this as flexible debt in order for Navajo Power to retain Native ownership of the company for the long-term.”
The shared goals, vision and mission between Navajo Power and investors is codified into various Impact Covenants that are part of the Loan Facility, some which are completely new to the field. These include, but are not limited to:
Profit Reinvestment into New Projects - 80% of profits must be reinvested in new projects or into community economic benefits rather than being distributed to owners. The Company and investors are seeking to help solve the market gap in project finance in Indian Country through deploying a self-propelling model to develop more and more clean energy projects with tribal communities.
Mission Investment - The interest rate on the Impact Loan Facility is 12%. In partnership with lenders, Navajo Power is dedicating approximately 10% of the interest to support community benefit projects in Native communities such as off-grid solar systems for households and other community economic development projects.
Native Ownership - Within a year of closing the first round of financing into the Loan Facility, the Company was bound to be majority Native owned and has already achieved this milestone. This is important for control of decision making and trust building with Tribes and partner communities.
Pay Scale - The company has placed a cap on executive compensation at five times the lowest paid employee.
About Navajo Power
Navajo Power is a majority Native-owned Public Benefit Corporation founded in 2018 that develops utility-scale clean energy projects on Tribal lands with the mission of ensuring Tribal communities prosper from the economic and environmental benefits of clean energy. Navajo Power's primary goal is to allocate over $3 billion of clean energy investments into Tribal communities by 2030.
Navajo Power’s immediate priority is to cultivate an economic upgrade from coal to renewables for Tribal communities through developing gigawatts (GWs) of solar and storage projects as the closure of local coal plants accelerates. The Company identifies and pursues new project opportunities on Tribal lands by obtaining all agreements, permits, entitlements, and approvals necessary to build, finance, and operate such projects for 20+ years (together, the “development assets''). The Company then provides its technical expertise to Tribal governments to help guide the creation of policies and regulations that are conducive to clean energy development and preserve the tribal sovereignty and prioritize the rights of local stakeholders. To learn more about Navajo Power visit navajopower.com.
About the W.K. Kellogg Foundation
The W.K. Kellogg Foundation (WKKF), founded in 1930 as an independent, private foundation by breakfast cereal innovator and entrepreneur Will Keith Kellogg, is among the largest philanthropic foundations in the United States. Guided by the belief that all children should have an equal opportunity to thrive, WKKF works with communities to create conditions for vulnerable children so they can realize their full potential in school, work and life.
The Kellogg Foundation is based in Battle Creek, Michigan, and works throughout the United States and internationally, as well as with sovereign tribes. Special attention is paid to priority places where there are high concentrations of poverty and where children face significant barriers to success. WKKF priority places in the U.S. are in Michigan, Mississippi, New Mexico and New Orleans; and internationally, are in Mexico and Haiti. For more information, visit www.wkkf.org.
Contact Information:
Navajo Power
Brett Isaac
(928) 637-4830
Contact via Email
navajopower.com
Read the full story here: https://www.pr.com/press-release/849268
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