A Native-led economic development nonprofit based in Juneau has received $10 million toward projects that will help Southeast Alaska communities ditch fossil fuels. 

The money comes to Spruce Root via the Coalition for Green Capital. They’re a national group that first partnered with Spruce Root last year to establish a “green bank” — a type of bank that supports projects to promote clean energy or otherwise reduce greenhouse gas emissions to fight human-caused climate change. 

Michael Ching manages finances for Spruce Root’s Community Development initiatives. He says the money will support a wide variety of projects.

“From heat pump installers and solar equipment providers to innovative startups — perhaps renting EV scooters for tourists,” Ching said. “Green banks play a crucial role in accelerating the transition to a clean energy future.”

Investment in clean or renewable energy projects is exploding in Alaska, especially at Spruce Root. The $10 million commitment is the second major influx of money for their green bank. This summer, the U.S. Department of Energy awarded them $2.5 million to install heat pumps on Prince of Wales Island. 

Just weeks later, Southeast Conference and Juneau-based nonprofit Alaska Heat Smart also received more than $38 million for heat pump promotion from the Environmental Protection Agency. 

A heat pump is an efficient electric alternative to oil burning heating systems. Installing one can dramatically cut home energy costs and carbon emissions. But these funding sources don’t just pay for the heat pumps themselves. They also support renewable energy workforce development.

“Getting finance for renewable energy equipment is definitely necessary — also necessary is the manpower, the expertise, the human resource to get things installed,” Ching said. “We will develop training programs, technical assistance, including workforce development, so that people might be able to become a renewable energy installer — perhaps embark on additional income opportunity.”

That’s one of Spruce Root’s top priorities as funding for renewable energy projects grows, Ching said. And while heat pumps are getting a lot of attention in recent years, Spruce Root has already discussed other possibilities for the new funding, like beefing up charging infrastructure for electric cars and boats. 

One of the strengths of green banks, Ching said, is that they’re flexible in the projects they can support. And Alaska is home to at least two other green banks. Earlier this year, lawmakers established a state-led green bank. And the Valdez Native Tribe launched their own in 2023.