Independent power producer (IPP) ContourGlobal has closed its first renewable energy project financing in the US, as it continues to expand its presence in the country.
The transaction is a US$350 million investment, consisting of debt financing of around US$260 million and tax equity financing of US$90 million, according to sources familiar with the deal. The latter was provided by Tyr Energy, and the debt financing was arranged with a number of international lenders, including Crédit Agricole, ING Capital, Intesa Sanpaolo, Mizuho and MUFG.
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The financing will be used to support the development of the 324MW Black Hollow Sun PV project in Colorado; the first phase of the project was commissioned in September, and ContourGlobal expects to start commercial operations at the second and final phase by the end of next year. Power generated at the first phase is sold to the community-owned public power utility Platte River Power Authority in Colorado under a power purchase agreement (PPA), and ContourGlobal has not announced an offtaker for the second phase of the project.
The company added that it could seek to raise “additional funding” following the start of work at phase two, in the form of an additional US$71 million in tax equity financing, which could raise the total financing for the project to around US$421 million.
“By successfully closing our first tax equity and project financing for a renewable asset in the United States, we have demonstrated the quality and bankability of our projects, which continue to attract top-tier financial institutions”, said ContourGlobal president and CEO Antonio Cammisecra.
The investment is an important milestone for ContourGlobal, which has sought to transition from fossil fuel investments to a “predominantly” renewables IPP, and grow its footprint in the Americas in particular, since its 2022 acquisition by US investment firm KKR. Last year, the company acquired the first three phases of the mammoth Oasis de Atacama solar-plus-storage project in Chile, with a total solar capacity of 2GW; all three phases are expected to begin commercial operation by next year.
