Cubico Sustainable Investments to buy five US solar projects

24 January 2019 (Last Updated January 24th, 2019 17:26)

Cubico Sustainable Investments has agreed to acquire five solar projects totalling 580MW from Cypress Creek Renewables (CCR). 

Cubico Sustainable Investments to buy five US solar projects
Projects being acquired by Cubico are in South Carolina, North Carolina, and Texas. Credit: chuttersnap on Unsplash.

Cubico Sustainable Investments has agreed to acquire five solar projects totalling 580MW from Cypress Creek Renewables (CCR).

These projects are in South Carolina, North Carolina, and Texas. Financial details of the deal have not been revealed.

Cubico head of Americas Ricardo Diaz said: “We are very proud of having reached this ground-breaking milestone to enter the US market that further consolidates Cubico in the Americas, after having created one of the leading renewable energy platforms in Latin America.

“We now plan to continue consolidating our presence in the market supporting developers to achieve their clean energy ambitions in the country.”

The first project in this portfolio to commence development is Palmett, near Orangeburg, South Carolina. This project achieved its financial close at the end of December 2018.

US Bank provided the tax equity, while HSBC and National Australia Bank offered construction financing and back leverage facility.

“It gives Cubico a diversified US solar market presence across multiple states and a range of offtake structures.”

The other four projects will all achieve financial close throughout the first half of 2019  before the construction begins.

Alongside the tax equity and debt, Cubico will invest up to $165m of equity to develop all projects in the portfolio.

These projects are expected to become operational by Q4 2020.

Cubico head of USA Oliver Alexander said: “We are delighted to have closed this large-scale portfolio acquisition with a leading developer like CCR, it gives Cubico a diversified US solar market presence across multiple states and a range of offtake structures. We look forward to working closely with CCR on taking the projects through financing and construction and into operations.”

US Bank vice-president and US Bancorp Community Development Corp business development officer Jon Peeples said: “US Bank is excited to begin a relationship with Cubico and be a part of its expansion in the US with this first project in South Carolina.”

CCR is currently providing the ongoing development, EPC and O&M service.