Morgan Stanley Invests in Torch to Expand Integrated Renewable Power Solutions

The partnership will help Torch become an independent power producer and a top player in the growing renewable energy market.
Not only does it develop energy projects, but it also owns and operates them.

Morgan Stanley Infrastructure Partners (MSIP), a global leader in private infrastructure equity investing, has invested in Torch Clean Energy, a US-based clean energy and battery storage developer, to develop the latter's transition to an integrated renewable power platform.

According to the agreement, MSIP will invest in Torch and back its transition from a developer of renewable energy projects to a fully integrated clean power business. This will help Torch develop new green energy projects, as well as construct, operate, and manage energy assets.

In the Mid-Atlantic region (including Virginia) and the desert Southwest, Torch has already developed and sold more than 1.2 gigawatts of renewable power. Energy demand is surging in those regions, owing to factors such as data centres in the Mid-Atlantic and the strong solar resources in the Southwest.

Over the years, the company has built strong connections with power buyers and developed expertise in managing the planning and connection of new energy projects in these markets.

Jonathan Kilberg, CEO of Torch Clean Energy, said: “We are excited to partner with Morgan Stanley Infrastructure Partners. This partnership gives us the resources and support to scale our operations, enhance our capabilities and continue to deliver real value to our customers. Together, we’re focused on driving innovation, improving efficiency, and meeting the rising demand for clean, reliable energy and capacity.”

The collaboration helps Torch scale up its operations. Investment from Morgan Stanley will provide a fillip to its construction processes, procurement, and project finance management. This means Torch will become an independent power producer and provide an array of services to customers.

Chris Ortega, Head of Americas for MSIP, said: "We are thrilled to partner with the Torch team through this strategic investment that will support the next phase of their journey, transitioning into an integrated renewable power business.

“We believe Torch is well-positioned to benefit from the industry tailwinds of electrification and data center demand through its differentiated strategy of siting high-value contracted projects in growing markets.”

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Source: Morgan Stanley