This Development Capital Facility is among the first ever structured for early-stage geothermal development, drawing on the best practices from the renewables and natural resource sectors. The financing establishes a revolving development credit facility designed to accelerate project development across Zanskar's growing portfolio. The non-recourse facility covers key pre-construction activities, bridging projects to traditional bank project financing, and is structured to upsize to $100M as the portfolio scales.
For a sector that has long struggled to secure non-dilutive development capital, the deal is a watershed moment. It strengthens Zanskar's ability to commercialize its pipeline of naturally-occurring geothermal systems and sets a scalable financing precedent for greenfield geothermal as a recognized asset class across the U.S.
"Zanskar has successfully transitioned from a pure geothermal explorer and operator to pioneering the financial infrastructure the entire industry needs to scale. This facility unlocks the critical bottleneck of early-stage project financing," said Carl Hoiland, CEO and Co-founder of Zanskar. "We are deeply appreciative of our partners, Just Climate and Spring Lane Capital, whose innovation and commitment have not only validated our business model but have created a blueprint for accelerating a significant expansion of dispatchable, clean geothermal energy in the U.S."
Diego D'Sola, Vice President of Finance at Zanskar, added: "The geothermal industry has been stagnant for decades and lacking the right financial structures. We believe this facility charts a cost-of-capital trajectory that will put geothermal on par with other mature energy asset classes."
Zanskar has assembled one of the industry's leading portfolios ...
