Capital Dynamics’ Clean Energy Infrastructure business has signed a 150MW power purchase agreement (PPA) with generation and transmission cooperative Hoosier Energy.
Hoosier Energy will purchase 150MW of clean energy generated by Capital Dynamics’ Ratts 2 greenfield solar project in Knox County, Indiana, US.
Hoosier Energy president and CEO Donna Walker said: “Hoosier Energy’s PPA with Capital Dynamics is an important step toward achieving our long-range plan of adding diverse projects to our energy portfolio that focus on lowering costs for our members and reducing our carbon footprint.”
Arevon Energy Management and Tenaska will co-develop the project. A statement from Capital Dynamics said the companies played an “instrumental” role in procuring and negotiating the terms of the PPA.
Construction works at the solar project will begin next year, with commercial operation anticipated in 2023. Construction will create 188 full-time jobs.
Last October, the Knox County Council approved the economic development agreement for the Ratts 2 Solar Project. Additionally, the county finalised a solar ordinance to guide certain technical aspects of the project.
According to the agreement with Knox County, project developers have agreed to pay $2.5m for the economic development over a period of six years. The project will also pay an estimated $1m in annual lease payments to landowners.
Capital Dynamics CEO Martin Hahn said: “We are extremely pleased that Knox County has been so supportive of the Ratts 2 Solar Project and are grateful for their partnership.
“This project will bring jobs, tax revenue, landowner lease payments and a wide range of additional economic benefits to Knox County.”