New Partnerships support Corporations to fund decarbonization with zero impact on bottom line.
Decarbonizing the grid requires building new generation
Sustainability leaders have limited options beyond unbundled RECs to satisfy board, investor, and regulatory pressure to mitigate their Scope 2 emissions. Companies like Google, Amazon, and Microsoft have teams of experts negotiating Virtual Power Purchase Agreements to meet their needs. However, these contracts are complex and introduce long-term risks that make most CFOs uncomfortable.
Zettawatts has created the Additionality REC Market allowing corporations to make a forward commitment to purchase 5 or 10-year strips of RECs from new pre-construction (and pre-COD) projects at a fixed price. ARECs deliver all the impact of a VPPA with none of the complexity and risks. The AREC Market offers fixed-price forward contracts to buy unbundled RECs from new renewable energy projects under development. This unique approach allows for instant diversification, reducing buyer and seller risks. By acting as a central hub, Zettawatts represents a bankable revenue stream for project developers and ensures that a given corporation is not exposed directly to a single project for the Additionality claims.
Tax Credit Transferability turns Liability into an Asset
Thanks to the Inflation Reduction Act, Transferable Tax Marketplaces allow companies to purchase Investment Tax Credits (ITCs) or Production Tax Credits (PTCs) from renewable projects at a discount and apply them to their current year taxes. This mechanism was enabled by the Inflation Reduction Act, which unlocked hundreds of billions of dollars in tax credits. These platforms are designed to make sustainable finance more efficient and interconnected, helping developers, tax credit buyers, and financial institutions transact and manage transferable tax credits by streamlining price discovery, project diligence, transaction closing, and reporting.
Now, Corporate Tax Liabilities can be a decarbonization Asset.
For example, a corporation with $30m in tax liability can transact with one of our partners to purchase $30M in ITCs for $27.5M and use the tax savings to purchase ARECs with zero-impact to the companies bottom line. This will produce several “sustainability” stories, including the projects leveraging ARECs and Tax Credits bring a renewable energy project to “bankability.”
Announcing New Partners
Zettawatts has partnered with experts in the Transferable Tax Market: Basis Climate and REOX.
Basis Climate is a market maker for clean energy tax credits. It simplifies clean energy tax credits for buyers and sellers, providing a digital marketplace for transferable clean energy tax credits . Basis Climate is a leader in the market, having closed over $160m of credit transfers and also provides valuable market insights to customers such as it's quarterly Tax Credit Pricing Perspective. [25, 26, 27]
REOX, or Renewable Energy Open Exchange, leads the charge in transforming the renewable energy market through its innovative exchange platform. Specializing in Investment Tax Credits (ITC) and Production Tax Credits (PTC), REOX connects buyers and sellers seamlessly. They offer tailored, detail-oriented transactions and comprehensive services like due diligence, marketing, tax preparation, and financing. By simplifying the tax credit market complexities, they empower developers and buyers, accelerating renewable energy adoption while fostering economic and environmental sustainability
These partnerships allow Zettawatts to leverage the capabilities of these platforms to help companies reduce their tax liabilities while funding decarbonization efforts.