Apollo Funds to acquire stake in US Wind to fund offshore project

17 August 2020 (Last Updated August 17th, 2020 13:06)

Apollo Global Management has announced that its affiliates have acquired a stake in offshore wind energy development company US Wind.

Apollo Funds to acquire stake in US Wind to fund offshore project
US Wind expects to bring the 80,000-acre offshore wind project online by early 2024. Credit: Nicholas Doherty on Unsplash.

Apollo Global Management has announced that its affiliates have acquired a stake in offshore wind energy development company US Wind.

As part of this, the company will invest up to $265m through convertible debt and equity to acquire an equity stake in US Wind. It will also fund the development and construction of a wind energy project off the coast of Maryland, US.

Neither company has revealed what percentage Apollo will take.

Apollo Infrastructure and Natural Resources senior partner and co-head Geoffrey Strong said: “US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy.

“For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the firm’s strong commitment to sustainability.”

US Wind controls the Maryland Wind Energy Area under a Bureau of Ocean Energy Management lease covering approximately 80,000 acres.

This area lies 30 miles off the state’s coast and has the capacity for an estimated 1.3GW of renewable power generation.

With a 270MW capacity, the first phase of the project will be able to power more than 75,000 Maryland homes with clean energy.

US Wind expects the project to come online in early 2024. With a lifespan of more than 25 years, the company says the facility will create thousands of jobs.

Under the 2013 Maryland Offshore Wind Energy Act, US Wind is planning to sell electricity and renewable energy credits.

US Wind president Riccardo Toto said: “We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing the development of our offshore wind projects.

“Apollo is a creative and dynamic partner, with global expertise, and together we believe we can make a positive impact on the energy transition in the US.”