COPENHAGEN - Ørsted A/S (CPH:ORSTED), a Danish renewable energy company, has divested a 50% equity stake in three of its US onshore solar and battery storage projects to Energy Capital Partners (WA:CPAP) (ECP), an investor with a focus on energy transition. The deal, valued at USD 572 million, involves two solar farms in Texas and a combined solar and battery storage facility in Arizona.
The transaction includes the 468-megawatt Mockingbird Solar and the 250-megawatt Sparta Solar projects in Texas, as well as the Eleven Mile Solar Center in Arizona, which boasts 300 megawatts of solar capacity and 300 megawatts/1,200 megawatt-hours of battery storage. These projects are set to commence operations in 2024, with established tax equity partnerships and power purchase agreements already in place.
Ørsted will maintain a 50% ownership stake in the projects and will continue to operate them throughout their lifespan. The financial closing of the transaction will be recognized in the company's financial reports for Q4 2024 and Q1 2025, subject to certain conditions.
The sale is part of Ørsted’s broader divestment strategy, aimed at freeing up capital to meet mid- and long-term financial targets. Earlier in the year, Ørsted secured approximately USD 734 million in upfront proceeds from tax equity partner J.P. Morgan and also signed a tax credit transfer agreement for the Mockingbird Solar Center. Including the proceeds from this divestment, the total capital raised for the three projects amounts to USD 1.306 billion.
James Giamarino, Ørsted’s Head of Commercial in Region Americas, emphasized the importance of partnerships in achieving the company's US onshore portfolio growth. Cody Castaneda, Ørsted’s Head of Partnerships & M&A Americas, expressed enthusiasm for the continued partnership with ECP, highlighting the investment benefits of Ørsted's diverse energy portfolio.
Matt Himler, Principal at ECP, noted the significance of the projects for meeting the increasing demand for electricity with clean energy in the United States. He expressed confidence in ECP's ability to contribute to the provision of carbon-free energy in Arizona and Texas.
With the addition of Mockingbird, Eleven Mile, and Sparta Solar to its operations, Ørsted has expanded its US footprint to over 6 gigawatts of onshore wind, solar, and battery storage capacity either operational or under construction. This information is based on a press release statement from Ørsted A/S.
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