Blue Earth presents yieldco unit E2B Growth

Blue Earth Inc (NASDAQ:BBLU) has established a new subsidiary, E2B Growth Inc, which will serve as a yieldco vehicle, the US-based renewables firm said Thursday.

The plan is for the new wholly-owned unit to be acquiring alternative and renewable energy projects from BBLU and third parties in exchange of cash and equity.

“We believe that the formation and funding of E2B will provide another funding mechanism for our alternative/renewable energy projects,” said BBLU chief executive Johnny Thomas. Blue Earth said its board is planning to transfer to the yieldco some of its combined heat and power (CHP) plants, without mentioning capacity details.

Yieldcos are becoming an increasingly popular financing platform in the renewables industry. Already, major solar and wind energy companies such as SunEdison, First Solar, SunPower, PNE Wind and Canadian Solar have embraced the concept. On Thursday, Canadian company Atlantic Wind and Solar Inc (OTCMKTS:AWSL) also said it has formed a yieldco, Power 1 Inc.

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