The two agreements relate to the construction of the wind farm located in Iowa, which will have an installed capacity of 30 MW, requiring a total equity investment of approximately 56 million USD.
Building Energy SPA, multinational company operating as a global integrated IPP in the Renewable Energy Industry, announces the closing of a Partnership Agreement and a Capital Contribution Agreement between its US subsidiary Building Energy Wind Iowa and Capital One Bank for the construction and operation of their first distributed generation wind farm located in Iowa, which will add up to 30 MW of wind generation capacity. The project, which requires a total equity investment of approximately 56 million US dollars is supported by a long term power purchase agreement (PPA).
Capital One Bank commits to a tax equity contribution of approximately $33 million to the project portfolio and will release funds at the commercial operation date expected in the fourth quarter of 2016, subject to fulfillment of requirements outlined in the capital contribution agreement. The equity interest will allow them to obtain the tax and financial benefits attributed to the project.
The Iowa Wind Distributed Generation project represents the first wind farm developed by Building Energy and Optimum Renewables, a local developer, under a strategic development agreement. The project, located north of Des Moines, in Story, Boone, Hardin and Poweshiek counties, is comprised of ten onshore wind turbines, each with a rotor diameter of 125 meters and a 3.0 megawatt generator mounted on an 87.5 meter steel tower. Building Energy’s Wind farms will generate 110,000 MWh per year, which will be enough to power 11,000 US families and avoiding approximately 100,000 tons of CO2 emissions according to US Environmental Protection Agency methodology, the equivalent of the annual emissions from approximately 21,276 cars removed from the road.
The project benefits from the strong wind resources in the state of Iowa and the wind farm will be built in 4 different counties in order to provide renewable energy to as many local communities as possible and to keep electricity rates stable and affordable.
The company, however, has been present in the US market since 2013 with its offices in Washington DC, from which it has been managing the development of several projects totaling 100 MW, such as a solar plant in Annapolis, which will be built on a closed landfill, in Baltimore, as well as a portfolio of solar parks and rooftop solar arrays in New York for Cornell University, one of the US’ Ivy League University.
Andrea Braccialarghe, Building Energy Managing Director USA, stated “We are extremely pleased with the closing of this agreement, which further demonstrates Building Energy commitment to Iowa and North America as a whole. A market in which we started off with a solar portfolio, we have now expanded into other generation technologies including wind power. We are planning to further expand our generation capacity in North America, continuing to leverage on our multi-technology strategy with our commitment to environmental responsibility”.
“We are pleased to work with Building Energy, a global leader in the renewable energy market,” said George Revock, Managing Director and Head of Alternative Energy and Project Finance at Capital One Bank. “This investment will help Building Energy provide affordable and sustainable energy to local communities across Iowa, and also will advance Capital One’s sustainable energy initiative.”
Building Energy is a multinational company operating as Global Integrated IPP in the Renewable Energy Industry on four continents. The company is vertically integrated on the value chain, from the development of projects to the sale of energy. With a pipeline in 24 countries with over 2,500 MW and generative assets being built over the next two years for more than 800MW (the Near Notice to Proceed and Backlog projects), the company is positioned to be one of the major players on the international scene in the renewable energy field.
For further information, visit the site www.buildingenergy.it.
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $221.8 billion in deposits and $330.3 billion in total assets as of March 31, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.