Ohio State University trustees approved a groundbreaking deal to privatize the school’s energy operations for more than $1 billion.
Trustees and administrators this week praised the 50-year deal with French energy giant Engie, which resulted in the largest one-time payment Ohio State has ever received.
The French energy giant Engie will oversee Ohio State’s energy operations for decades.
“It’s safe to say that this is a historic project in the life of our institution,” Board of Trustees Chairman Alex Shumate said Thursday at a committee meeting that delved into specifics of the partnership.
Engie North America and financial partner Axium Infrastructure will manage Ohio State’s enormous energy apparatus until 2067.
Privatizing energy is unusual for universities
Universities typically manage their own energy infrastructure, but officials think other colleges and universities will follow Ohio State’s lead.
The deal’s amount – $1.165 billion – more than doubles what the university received in its 2012 parking deal with CampusParc. That agreement, also for 50 years, was the university’s first high-profile privatization of what it deems non-essential assets.
Paris, France-based Engie and Montreal and New York-based Axium are spending big at first, with a $1.015 billion upfront payment, but will be paid back piecemeal by Ohio State over the term of contract, as explained here.
The joint venture, Ohio State Energy Partners, will eventually create a $50 million research hub on campus, part of $150 million mandated by Ohio State to spend on some academic initiatives:
$40.5 million for philanthropy.
$25 million for financial aid.
$5 million for 500 internships.
$20 million for sustainability curriculum and staff development.
$9.5 million for five faculty positions.
