The North American renewables energy company Longroad Energy says it has reached major project milestones on two significant greenfield renewable generation projects.
The company, established in 2016 by Infratil Ltd (NZX: IFT) and the NZ Superannuation Fund, sold its equity in the Phoebe solar project and confirmed notice of proceeding with the Rio Bravo wind development.
The Phoebe solar project is in Winkler County, west Texas. Longroad confirmed sale of the 250 MWac project to Canadian investor Innergex Renewable Energy.
Longroad said that when completed in mid-2019, Phoebe will be the largest solar facility in Texas and is projected to generate 738 GWh of electricity per annum, of which 89% has been sold on long term contracts to Shell Energy.
Phoebe is also eligible for US federal tax credits and will benefit from the sale of renewable energy certificates.
To finance the construction, Longroad arranged $US292 million of construction and term project financing from a consortium of banks alongside the $US105 M equity investment by Innergex Renewable Energy.
Longroad was responsible for the complete development and will oversee construction.
The Rio Bravo wind project is in Starr County, south Texas.
Longroad reached full notice to proceed on the 238MW Rio Bravo project.
About 80% of the electricity has been sold on long-term contract to Citigroup Energy. Construction has begun and commercial operations date is anticipated in June next year.
Funding of the $US300 M construction cost has been committed, including $US200 M by a consortium of lenders and US$100 M by Longroad as equity. This project is eligible for US federal tax credits.
Infratil and the NZ Superannuation Fund each provided $US45 M to enable Longroad to provide its equity commitment. Longroad is now evaluating long-term options for Rio Bravo.
Longroad said sale of Phoebe and other earnings will enable it to distribute about $US30 M to each of Infratil and the NZ Superannuation Fund this financial quarter.