New Energy Capital, in partnership with the CleanTech Alliance Fund managed by North Sky Capital, has financed the project through a combination of equity, California Self Generation Incentive Program Grants, New Markets Tax Credits, and Investment Tax Credits.

The facility located on sites owned by the University of California San Diego (UCSD) and City of San Diego will employ molten carbonate fuel cells produced by Fuel Cell Energy of Danbury and will run on renewable biogas produced by BioFuels Energy from the San Diego wastewater treatment plant.

The entire output from the project, which will produce approximately 35 million kilowatt hours of electricity anually, will be sold to UCSD and the City of San Diego, off-setting their power needs with renewable energy and saving them more than $2m in electricity costs over ten years.

BioFuels Energy will leverage the services of Otto H Rosentreter Company of Santa Fe Springs, California, a company that designs and installs fuel cell systems, to develop the project that is expected to reduce the city’s annual CO2 emissions by more than 25 million pounds.