HASI's Big Bet on Water: A New Frontier for Green Infrastructure

ANNAPOLIS, MD – August 18, 2026 – When a leading sustainable infrastructure investor with over $17 billion in assets makes its first-ever move into a new sector, it’s more than a transaction; it’s a signal. HA Sustainable Infrastructure Capital’s (HASI) recent structured equity investment in the Pasco Resource Recovery Center in Washington is precisely that—a clear indicator that the next frontier for high-value, long-term green investment flows directly through our water systems.

For years, HASI has been a powerhouse in financing the energy transition, building a formidable portfolio in assets like solar, wind, and energy storage. Its pivot to water infrastructure, starting with the innovative Pasco facility, marks a strategic expansion into a sector defined by critical need and immense potential. This isn't just about diversification; it’s about recognizing that in the 2026 landscape, sustainability is an interconnected system where water, energy, food, and climate are inextricably linked. The Pasco deal provides a powerful lens on how sophisticated capital is now being deployed to solve complex environmental challenges while generating stable, long-term value.

A Strategic Pivot to Water's Blue Gold

HASI's investment, which closed last month, is backed by a 30-year wastewater treatment agreement with the City of Pasco, providing the kind of contracted, predictable cash flow that investors prize. This is the same financial logic that propelled the renewable energy boom, and its application to the water sector is a watershed moment. The U.S. water reuse market, valued at over $7 billion in 2025, is projected to nearly double within a decade, driven by aging infrastructure, climate-induced water stress, and tightening regulations.

With a reported EPA funding gap exceeding $630 billion for municipal water systems, private capital is no longer just an option; it's a necessity. HASI’s move validates water infrastructure as a premier asset class for investors seeking both financial returns and measurable environmental impact. The Pasco project, with its multi-faceted benefits, fits this mandate perfectly.

“HASI is excited to invest in this innovative facility, which not only returns clean water for agricultural use, improves air quality, and reduces emissions in the Pasco area, but also produces RNG to decarbonize the local economy,” said Annmarie Reynolds, HASI’s Co-Chief Investment Officer, in a statement. Her comments underscore the project’s holistic value proposition—it’s not just treating water, but creating an ecosystem of positive returns for the community and the climate.

The Pasco Blueprint: Turning Waste into Community Wealth

At the heart of this deal is a remarkable feat of engineering and ecological design: the Pasco Resource Recovery Center. Developed by Burnham, a specialist in water infrastructure, the $180 million facility is a masterclass in the circular economy. It tackles a major challenge for the region’s booming agribusiness sector—the wastewater from seven large food-processing plants—and transforms it into a suite of valuable resources.

The facility, which became operational in 2025, employs anaerobic digestion to break down organic matter. This process yields multiple benefits. First, it produces biogas, which is refined into renewable natural gas (RNG)—enough to heat over 4,500 homes annually. This RNG is sold to the local utility, creating a revenue stream that helps offset the city's treatment costs. Second, the process creates nutrient-rich soil amendments, closing the loop by returning vital organic matter to the agricultural system.

Most critically, the Pasco Center recycles over one billion gallons of water each year. This treated water is used to irrigate 1,900 acres of city-owned farmland, providing a resilient, sustainable water source for local growers in a region where water is precious. The facility also features the world's largest algae-based wastewater treatment system, which uses algae in a 45,000-square-foot greenhouse to recover nitrogen and capture carbon. This innovation not only cleans the water to a high standard but also won the project a Wastewater Digest 2024 Top Project award, cementing its status as a model for the nation.

For the residents of Pasco, the benefits are tangible. The project supports over $800 million in local investment and creates jobs, while the upgraded facility has significantly reduced industrial odors that were previously a community concern. It demonstrates on a local level how strategic infrastructure investment directly improves lives.

Forging the Future with Public-Private Synergy

This project would not have been possible without a sophisticated public-private partnership (PPP). The model showcases how municipalities can address daunting infrastructure deficits by leveraging private sector expertise and capital. The City of Pasco needed to upgrade its wastewater capacity to support its growing industrial base but faced the monumental cost and complexity of such a project.

Enter Burnham, which brought its 'Collaborative Delivery Model' to the table. The company financed, designed, built, and now owns and operates the facility, assuming the construction and operational risk. This turnkey approach allowed the city to acquire a world-class asset with no upfront capital cost. Now, HASI’s investment provides the long-term capital, completing a three-part harmony of public need, private innovation, and patient financial backing.

“The Pasco Center is exactly the kind of project Burnham was built to deliver,” said Chris Tynan, Burnham’s Chief Executive Officer. “HASI’s investment positions us to bring similar solutions to other public utilities facing water and wastewater challenges.” His vision points to the scalability of this model. As cities across the country grapple with similar issues, the Pasco partnership provides a proven blueprint for success.

This single investment in eastern Washington is a microcosm of a much larger trend. It represents the convergence of technology, finance, and public policy to create infrastructure that is not only sustainable and resilient but also generative, turning what was once a liability into a source of clean water, renewable energy, and economic vitality.