Million Dollar Investment for REC Broker

With the prospects for renewable energy heating up thanks to new federal energy incentives, New Jersey-based GreenShift Corp announced an investment in Sterling Planet, one the country’s major brokers of renewable energy certificates (RECs). The RECs are transferable credits for renewable energy generation, and go hand in hand with the growth of the renewable energy markets.

Under the terms of its agreement with Sterling, GreenShift is purchasing $500,000 in 8% convertible notes in Sterling and another $500,000 in warrants that will each convert into Sterling common stock upon the sooner of Sterling’s completion of a larger venture capital raise or December 31, 2005. RECs, or green tags, enable retail residential and non-residential consumers to purchase green, or environmentally friendly, energy through their existing utility and offset reliance on power generated from fossil fuel sources. RECs represent all of the positive environmental attributes of renewable power generation from sources such as solar, wind and organic bioenergy power and can be purchased and used by consumers regardless of whether or not their local utility has access to green power generation. Sterling Planet, founded in 2000, was the first company to offer every U.S. home and business a way to reduce the environmental impact of regular electricity production. Now Sterling Planet is one of the market leaders in retail sales of renewable energy from the sun, wind, biomass, small hydro and other renewable technologies. Sterling has sold over 2.33 billion kilowatt hours of renewable energy since its inception, representing enough energy to power 214,300 homes for a full year or taking over 283,000 cars off the roads which will offset 1,624,000 tons of carbon dioxide. Sterling is also the nation’s leader in partnering with electric utilities and businesses to market or supply renewable energy. Currently, Sterling has 26 utility partners nationwide in states such as Florida, Massachusetts, New York, Connecticut, New Jersey and Rhode Island. “This is a very exciting time for us,” said Mel Jones, Sterling’s president and chief executive officer. On the supply side, renewable energy presently accounts for less than 2% of the nation’s electricity supply and is expected to grow significantly over the coming years. On the demand side, surveys indicate that at least 70% of Americans favor renewable energy, and a 2003 University of California at Berkeley survey showed that 44% are willing to pay an average of $8 more per month for renewable energy. “We believe that we are at the beginning of a strong growth trend in our market and we are looking forward very much to growing our company and providing our clients with valuable opportunities to purchase renewable power,” Jones said. GreenShift Corporation is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
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