Hannon Armstrong Sustainable Infrastructure: Climate Focused Investor with excellent market access and capital to deploy

Investing in Climate Solutions

Updated: Mar 04, 2025

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Executive Summary

Hannon Armstrong Sustainable Infrastructure Capital

HASI is a US based and focused asset manager that deploys their $13bn AUM to fund projects that drive the transition to clean energy. Their 520 investments include solar, onshore wind, battery energy storage systems, renewable natural gas and fleet decarbonisation. They invest only in proven technologies to reduce risk and partner with major energy companies such as Engie and Summer Ridge Energy to provide a pipeline of high quality investment opportunities and additional expertise.

Investor Relations

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

QUALITY OF ASSET BASE

Over 99% of projects in HASI's portfolio are on track to meet agreed-upon returns set out at the investment stage. Their proprietary CarbonCount scoring tool to assess the CO2 saved per $1,000 invested enables them to select only the best assets and has helped them develop an asset base of environmental and financial quality.

PIPELINE DIVERSIFICATION

The 150 opportunities in HASI's pipeline allow them to evolve their portfolio quickly to respond to evolving trends. They continue to invest, having deployed c.$2bn in each of the last 2 years and a recently announced $2bn Joint Venture with KKR should see this figure increase in the short term.

LEADER IN RAPIDLY EXPANDING MARKET

Whilst investors have only recently begun allocating large funds to the energy transition, HASI have for years been building the expertise, capital and pipeline to be ahead of the competition. They are primed to capitalise on this coming supercycle and possess the technical expertise to deliver knowledge and experience to these projects in addition to their capital.

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term

The portfolio yield of 8% has been creeping up over recent years, but newly issued debt will soon be deployed in high yielding assets leading to this figure rising quickly.

Medium term

U.S. energy demand is projected to increase by 20% by 2030, necessitating further deployment of existing technologies and development of new clean energy technologies like nuclear fusion. These emerging technologies have significant growth potential but will require substantial financial investment for research, storage solutions, power plant construction, and distribution infrastructure, all of which HASI can be involved with.

Long term

Long term increased investment in clean energy is required to meet Net-Zero 2050, and having a competitive advantage in the industry will create an enormous pipeline for HASI.

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

Jason Grumet

Chief Executive Officer, American Clean Power Association

6,000 audience

Expert Insights

I’m celebrating Clean Power Week with the American Clean Power Association (ACP)! Our industry’s growth over the past two years is nothing short of remarkable.

80% of all of the power added to the grid last year was non-fossil clean energy. It’s time to take yes for the answer and build a modern sustainable energy future.

GridPoint

Energy Consultant

7,000 audience

Expert Insights

Many companies want to grow their sustainability efforts but are concerned about 💲. Our recent partnership and credit facility with @HASI_Inc , combined with our subscription-based model helps remove these financial barriers to building decarbonization.

Alli Gold Roberts

Policy Director, U.S. Climate Alliance

2,000 audience

Expert Insights

@CeresNews is here at #ClimateWeekNYC talking about how companies can maximize the historic federal investments to rapidly #decarbonize with @SiemensUSA @Microsoft @HASI_Inc & @Holcim!

We are proud to announce that nearly 350 #ClimateMayors have pledged to collectively electrify at least 50% of municipal fleets by 2030 and increase electric vehicle charges by at least 500% by 2035.

Justin Guay

Program Director, Quadrature Climate Foundation

4,000 audience

Expert Insights

97% of all new electricity generation built in the US in the first half of this year was clean energy Almost all of it was solar, wind and batteries Here comes the sun 😎

The world has so much solar production that we can meet our goal of tripling clean energy AND with just a fraction of whats leftover provide basic energy access to the worlds poor Clean energy abundance is a beautiful thing 😎

International Energy Agency

Global Energy Consultancy

300,000 audience

Expert Insights

Global investment in renewable power & grids overtook spending on fossil fuels for the first time in 2023 — a sign of the new energy economy that’s emerging But clean energy investment must grow much faster for the world to reach energy & climate goals

The rise of renewables – like solar, wind & hydro – means they’re set to overtake coal in global electricity generation for the 1st time in 2025

Investor Materials

Access the most recent investor updates published by the company.

Key Investor Materials

Announcement of JV with KKR

Article

ANNAPOLIS, Md. & NEW YORK--(BUSINESS WIRE)-- Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("HASI," "we," "our" or the…...

HASI Corporate Profile

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HASI Annual Report

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External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

Clean Energy Supply

Renewable Energy Growth - Center for Climate and Energy Solutions

Article

Energy Demand Growth

Robust Electricity Demand Growth Forecast

Article

Clean sources of generation are set to cover all of the world’s additional electricity demand over the next three years - News from the International Energy Agency

Profiting from the transition

Energy Transition Investment Trends 2024

Article

Research

State of the US Clean Energy Transition: Recent Progress, and What Comes Next

The U.S. clean energy sector received massive legislative wins in recent years, particularly with the Inflation Reduction Act, Bipartisan Infrastructure Law and CHIPs Act. But are these laws and the investments that come with them resulting in enough carbon-free power?

Team

Meet the experienced professionals leading our organization

Jeffrey Eckel

Jeffrey Lipson

Marc Pangburn

Viral Amin

What the Pro's Are Asking

Here are the questions that institutional investors are asking before making an investment decision.

What is the agreement with KKR?

In May 2024, HASI and KKR announced a venture aimed at investing up to $2 billion in “climate positive” sustainable infrastructure projects over the next 18 months. KKR cited HASI's pipeline as being highly complementary to their investment strategy which pleased shareholders - HASI shares rose over 16% higher on the news.

What gives HASI an advantage over traditional project financiers?

HASI's pipeline of 150 opportunities across 30 programme partners is a key differentiator. Whilst they generally compete with other financiers such as banks and investment funds, access to a wider array of opportunities via quality and quantity of industry relationships is a strong moat for HASI.

How is US clean energy capacity expected to evolve?

Estimates are for total clean energy capacity to increase 5x by 2035 from 300GW in 2023 according to BloombergNEF.

What is CarbonCount and why does it matter?

CarbonCount is HASI's proprietary scoring tool for evaluating assets to determine the efficiency by which each dollar of invested capital avoids annual carbon emissions. It allows investors to assess the efficiency of HASI's projects and potential partners to assess project viability prior to investment. For example, HASI's energy efficiency department has a score of 1.57, whilst their solar division scores 0.45, demonstrating the impact the former is having on the environment. It is an intentionally simplified model designed to allow quick and objective comparison.

What are the key challenges HASI faces and how can they be overcome?

The key challenges HASI faces are increased competition and varying levels of political support.

New players in the market will undoubtedly increase competitive tension in bidding processes to finance new projects. Financiers with lower costs of capital may be able to undercut HASI and secure access to projects HASI previously would have expected to participate in. HASI's moat of a high quality pipeline is a key mitigant to this risk, as evidenced by KKR's desire to partner with them.

HASI themselves acknowledge they are benefiting from political tailwinds - for example the Inflation Reduction Act of 2022. Were this to change, HASI may find fewer projects in their pipeline and increased risk in the pipeline they do finance. HASI will need to ensure their risk tolerance doesn't overly increase in the face of fewer opportunities, to retain the quality of the portfolio.