The Kresge Foundation has announced a $3 million guarantee to BlocPower, a climate tech firm based in Brooklyn, New York.

The investment, which will support a loan-loss reserve fund capitalized by the New York State Energy Research and Development Authority (NYSERDA), will help attract traditional investors by removing a degree of risk. BlocPower recently announced that it will lead a new public-private partnership to decarbonize 6,000 buildings across Ithaca, New York, and the Kresge investment will enable the firm to scale its work to improve efficiency and reduce on-site fossil fuel use in buildings, especially in low-income communities. BlocPower estimates that installing air source heat pumps—paired with supporting energy efficiency upgrades and other building improvements throughout the city—will cut Ithaca’s annual carbon dioxide emissions by 40 percent and create 400 jobs in green construction, technology, and management.

“This investment intrigued us because it included a unique opportunity to support the first 'whole city’ approach to electrification. We’re excited to bolster that effort as a model for other cities to learn from and emulate,” said Kresge social investment portfolio director Joe Evans. “Also, we know that supporting mission-driven entities like BlocPower is important because how dollars flow into a community makes a distinct difference in whether they will be truly responsive to community needs.”

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