US renewables developer energyRe has secured a total of US$240 million to finance the 108MWdc/198MWh Lone Star solar-plus-storage project in South Carolina.
The Bank of America provided a US$85 million tax equity commitment, while Santander committed a US$155 million for project financing. The latter includes construction debt, a tax equity bridge facility and a letter of credit facility.
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The developer said that the project qualifies for Investment Tax Credits (ITC) under the Inflation Reduction Act (IRA), and energyRE has signed a ten-year power purchase agreement (PPA) with regional utility Dominion Energy South Carolina for power produced at Lone Star.
On top of the PPA, energyRe said that Belgian-headquartered chemical company Syensqo will purchase all of the Renewable Energy Certificates (RECs) generated by Lone Star Solar, which will offset 35% of the company’s US emissions from electricity purchases.
Miguel Prado, CEO of energyRe said: “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 south-eastern United States. Today’s announcement underscores energyRe’s market leadership and our proven track record of delivering results for our communities.”
In December 2023, energyRe closed a deal for US$1.2 billion in financing to support the development of its US project pipeline and transmission projects. The company said it has more than 700MW of contracted solar projects in South Carolina and a regional development pipeline of more than 7GW.