Inaugural Project Financing and Tax Equity Transaction for energyRe
Lone Star Solar Expected to be the Largest BESS Installation in South Carolina
CHARLESTON, S.C., April 29, 2024 /PRNewswire/ — energyRe today announced that it has secured $155 million in project financing and a $85 million tax equity commitment for its 108 MWdc Lone Star Solar project and 198MWh Battery Energy Storage System (BESS), one of the largest battery systems in South Carolina. Lone Star Solar is under construction and is expected to be operational by Fall 2024.
The $155 million in project financing for Lone Star Solar includes construction debt, tax equity bridge facility and letter of credit facility with Santander acting as the Coordinating Lead Arranger. Bank of America has committed $85 million in tax equity. The project qualifies for Investment Tax Credits (ITCs) under the Inflation Reduction Act (IRA). The transaction, led by the energyRe M&A and Investments teams, showcases energyRe’s deep industry knowledge, financial acumen, and expertise in securing compelling financing solutions for its pipeline of renewable energy projects.
“Lone Star Solar reflects energyRe’s commitment to accelerating the U.S. energy transition with reliable, clean power,” said Miguel Prado, CEO of energyRe “We are grateful to our financial partners for supporting Lone Star Solar, which will be one of the largest solar and storage facilities in the Southeastern United States. Today’s announcement underscores energyRe’s market leadership and our proven track record of delivering results for our communities.”
“We are delighted to support energyRe in their first U.S. tax equity transaction,” said Todd Karas, Head of Renewable Energy Finance at Bank of America. “We recognize the Lone Star project as a milestone in energyRe’s growth and a noteworthy development for the State of South Carolina.”
“Santander is very proud to have supported energyRe in its first U.S. project financing,” said Nuno Andrade, Head of U.S. Global Debt Finance, Santander. “energyRe has positioned itself as a key player across an array of generation and transmission assets in the U.S., which we know are crucial to decarbonizing the energy sector and delivering clean energy jobs. We are truly appreciative of energyRe’s partnership and trust.”
In January 2023, energyRe announced a 10-year power purchase agreement with Dominion Energy South Carolina (DESC) for Lone Star Solar. Upon completion, Lone Star Solar will be one of the largest solar and storage facilities in the Southeastern United States and will have the largest battery on the DESC network. Over the life of the project, Lone Star Solar will generate more than $10 million in local property taxes and create approximately 185 jobs during construction.
Syensqo, formerly part of the Solvay Group, will purchase 100 percent of the renewable energy certificates (RECs) generated by Lone Star Solar; the clean power generated by Lone Star Solar will help Syensqo reduce carbon emissions for approximately 35 percent of its U.S. electricity purchases and decrease greenhouse gas emissions of its operations by 73,000 metric tons annually.
Today’s announcement builds on energyRe’s track record of investment and clean energy development in the Palmetto State. energyRe has more than 700 MW of contracted solar projects in South Carolina and a regional development pipeline of more than 7 GWs.
About energyRe
energyRe is a leading independent energy company focused on solving complex sustainability challenges and providing clean energy solutions in utility-scale transmission, onshore wind and solar, offshore wind, energy storage and distributed generation. Guided by the principles of innovation and partnership and backed by expertise and experience, energyRe is committed to creating a reliable, renewable energy future for all. energyRe has offices in New York, Houston, Indianapolis, and Charleston. For more information about energyRe, visit www.energyre.com
SOURCE energyRe