Investment Opportunity: Project Financing for Large Geothermal Heat Pump Projects

When it comes to the design and construction of sustainable, “green” buildings, the use of geothermal to provide heating and air conditioning may be the single most important and exciting concept around.

Of course, developers, architects, and owners of large industrial and commercial real estate (as well as multi-family residences) can earn LEED points for everything from bicycle racks to waterless urinals, and there is nothing wrong with that.  But when it comes to straightforward reduction in greenhouse gas emissions from fossil fuel consumption, it’s tough to beat geothermal, with its capacity to reduce energy bills (and the fuel required to generate that energy) by up to 80%.

Here’s an investment opportunity I’d like to recommend. Called “Diverso Energy,” it has a few unique features that are extremely attractive.  In particular, each project completed:

• Greatly decreases the capital expense related to heating and air conditioning by eliminating the need for cooling towers and boilers; converts the up-front cost of installing these systems into operating expenses that are paid over long periods of time (the geothermal system will likely outlast the building itself).

• Reduces operating expenses vs. traditional heating and cooling systems, insofar as geothermal runs on very little power ; it also removes the risk of escalating energy prices over the coming decades (something that is very likely almost certain to occur).

• Invokes the same business model as Solar City (market cap $3.3 billion), but with major benefits over solar PV.  Here, the cash flow from the projects is far more secure than PV on a roof that can break or degrade, or be bypassed if the customer simply goes back to the grid.  If these Diverso contracts are broken, the heat and cooling to the building can be turned off completely and immediately.

• Provides those who are concerned about the environment (or may be feeling the pinch of government regulatory bodies) to rest assured that this solution is incredibly “green.”  Most owners and tenants of such buildings put a value on the PR aspect of being eco-conscious, and this value will only increase over time as our civilization comes to a more complete appreciation of the environmental calamity in which it finds itself.

Again, we’re talking about debt / project finance here, with an attractive rate of return and extremely low risk.

I would ask anyone interested to contact me, and I’ll put you in direct touch with the principals.