Renewable energy project developer Vesper Energy has closed a $590 million financing deal for its Hornet Solar project in Texas. This project is said to become one of the largest single-phase solar initiatives in the United States, covering six square miles in Swisher County, Texas.
The Hornet Solar project will generate 600 MWac, which translates to powering around 160,000 homes every year.
The financing arrangement, made possible through collaboration with banks like MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking, is a testament to Vesper Energy’s financial strength and growth entering 2024.
Robert Scheuermann, Vesper Energy’s Chief Financial Officer, said, “Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex. We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”
The Hornet Solar project holds the promise of delivering renewable energy to communities in Texas, contributing to grid stability and reducing price volatility in the Electric Reliability Council of Texas (ERCOT) region.
Key to the financing structure is leveraging Production Tax Credits (PTCs) under the Inflation Reduction Act.
Advantage Capital’s involvement will facilitate the monetization of over $500 million in PTCs, providing essential financial support to the project.
The Hornet Solar project, boasting a capacity of 600MWac and 745MWdc, will utilize bifacial solar modules on a single-axis tracking system.
Construction, led by Blattner Energy, is already underway, with the project set to connect to Oncor Electric’s transmission system in ERCOT.