Cummins takes minority stake in Exergy Energy

COLUMBUS, Ind. — Cummins Inc. has taken a minority stake in Exergy Energy, LLC.

The Cummins – Exergy Energy partnership allows for the installation of Cummins power system solutions such as generator sets, energy storage systems, and switching equipment at the customer location to power the entire operation during grid outages or times of peak usage with no upfront CAPEX investment by the customer. Exergy Energy’s sophisticated software monitors the grid, and during periods of peak usage, automatically shifts the loads to the backup power system before an outage or peak demand charges occur.

Exergy Energy, the Always On, Always Green, Always Save, software and asset management firm, installs, owns and operates backup generator sets sized to power 100% of a facilities’ load during times of power outages and peak utility usage.

As owner of the asset, Exergy is responsible for the capital investment, service and maintenance and managing participation in grid programs. Exergy Energy earns substantial ancillary revenues by participating in grid-sponsored programs, such as demand response and synchronous reserves. Exergy shares a portion of the cash flows generated from these programs with its customers, thereby defraying part (or in some cases, all) of the costs associated with the program. At the end of the contract, ownership of the backup power system is transferred to the customer.

“Cummins is committed to helping its customers meet their resiliency and sustainability goals,” stated Wissam Balshe, Business Director of Cummins Energy Management Solutions business. “We recognize that the upfront capital expense of a generator set and power system components, coupled with the complexity of participating in grid services was causing organizations to avoid the difficult decision of finding a solution.”

He continued: “Exergy makes the process simple by removing the cost barriers of installing and operating a backup generator. Their platform is a breakthrough solution that provides the lowest cost way to achieve resiliency and sustainability in a single package.”

Exergy Energy’s CEO Dave March commented: “We appreciate the confidence the Cummins has shown in Exergy and our services platform, and we look forward to helping customers meet their resiliency and sustainability needs with no upfront cost.”

Terms were not disclosed.

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