Repsol has agreed today to acquire the renewable energy company ConnectGen, with a project portfolio of 20,000 MW and development capacities, for 768 million dollars (about 715 million euros) from Quantum Capital Group, a US fund specializing in the energy sectors and energy transition.
With this agreement, Repsol adds an onshore wind energy platform in the United States, complementary to Hecate’s solar and storage assets.
This operation reinforces Repsol’s position in the renewable energy sector, expands its international presence and supports the strategic objective of reaching 20,000 MW of installed capacity by 2030.
Repsol joins the ConnectGen team with valuable knowledge of the US business and industry, which will contribute to its successful growth.
The US renewable energy market is one of the largest and with the greatest growth potential. Repsol has 245 MW in operation in the country and 2,000 MW worldwide.
Repsol has taken a new step to accelerate its multi-energy transformation and become a net zero emissions company by 2050. The Spanish company has signed an agreement today to acquire the American renewable energy development group ConnectGen for 768 million dollars (about 715 million euros) to 547 Energy, Quantum Capital Group’s renewable energy development platform.
This operation represents another milestone in Repsol Renovables’ strategy, reinforcing its position as a global player in this energy sector, increasing its international presence and contributing to its goal of reaching 20,000 MW installed by 2030.
Headquartered in Houston, Texas, ConnectGen is a renewable energy developer with a multi-technology approach and in-house development capabilities, particularly in onshore wind energy projects in the United States. ConnectGen’s development portfolio includes 20,000 MW of onshore wind, solar and energy storage, in different phases of development, in the most attractive US regions. This portfolio of projects represents Repsol’s entry into the onshore wind energy business in the United States, one of the largest markets with the greatest growth potential in the world.
The acquisition of ConnectGen will reinforce Repsol’s strong capabilities in the United States, as well as its international experience, by adding an important onshore wind growth platform that complements the solar and storage development capabilities acquired after the purchase of 40% of Hecate . Energy in 2021.
ConnectGen employees, including its management team, will join Repsol Renovables, bringing valuable experience in the different phases of the projects’ value chain and deep knowledge of the US renewable sector.
“This transaction is another step in our firm commitment to transform our industry and become a net zero emissions company by 2050, while maintaining our profitable growth, diversification, multi-energy approach and ensuring profitability for shareholders. The acquisition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the highest growth potential. In this sense, the incorporation of its team of experts is key to ensuring the success of our future growth with solid profitability in the market,” explains Josu Jon Imaz, CEO of Repsol.
Wil VanLoh, Founder and CEO of Quantum, said: “Quantum is committed to driving the energy transition by creating the best platforms in renewable energy and climate technology. It has been a privilege to work alongside Caton Fenz (CEO of ConnectGen) and the entire ConnectGen team to build one of the leading renewable energy development platforms in North America. At Quantum and 547 Energy we are looking forward to seeing how Repsol converts these projects into operational assets, which will contribute renewable electricity to the US economy over the next decade.”
The transaction is expected to close by the end of the year, subject to customary regulatory approvals. Repsol has had Guggenheim Securities LLC and Baker Botts LLP as financial and legal advisers, respectively. Wells Fargo Securities LLC and Nomura Securities International Inc acted as financial advisors and Kirkland & Ellis LLP acted as legal advisor to Quantum, 547 Energy and ConnectGen.
The important renewable market in the United States
The US renewable energy market is one of the largest and with the greatest growth potential in the world. The Global Wind Energy Council (GWEC) predicts that in the next five years North America will add an additional 60,000 MW of onshore wind capacity, of which 92% will be built in the United States and the rest in Canada. . . In addition, the Inflation Reduction Act (IRA) has provided new support and long-term visibility for the expansion of renewables in this country. On this basis, annual wind and solar PV capacity additions in the United States are expected to double by 2027 compared to 2021.
Repsol entered the United States with the purchase of 40% of Hecate Energy in 2021. This company specializes in the development of photovoltaic solar projects and batteries for energy storage and has a project portfolio of more than 40,000 MW. Through this agreement, Repsol operates close to 245 MW of renewable photovoltaic solar projects in the country: Jicarilla 1 and 2 (125 MW) and 20 MW of battery energy storage system, and 100 MW of Frye (with 637 MW in total), which will be fully operational in 2024.