Greenbacker Renewable Energy Company has signed an agreement to acquire a controlling stake in two US windfarms located in Iowa from a global asset manager. Financial details of the transaction have not been divulged.
The acquisition of the two windfarms Elk (42.5MW) and Bethel (37.5MW) is expected to further strengthen the company’s position in the US renewable energy sector.
Greenbacker Capital co-CEO Charles Wheeler said: “Greenbacker is thrilled to further build our presence in the wind energy sector as we continue to execute on our long-term objective of providing RIA and family office investors with investments in real-asset renewable energy projects that have the potential to generate strong, stable cash flows and solid capital appreciation.
“Greenbacker is committed to playing a key role in the ongoing growth of the renewable energy sector, and to enabling investors to participate in this trend. We look forward to partnering with the state of Iowa to help meet its ambitious clean energy goals in the years ahead.”
The two windfarms have long-term power purchase agreements (PPA’s) with Central Iowa Power that caters to over 13,000 commercial and industrial accounts in Iowa and 300,000 residents.
The two projects are expected to generate regular revenue for a long time, as Elk currently has 13 years remaining in the contract period, while Hawkeye holds 18 years of the contract period.
The deal is expected to increase Greenbacker’s power generating capacity by approximately 519MW, which includes 172MW of windfarms, 335MW of utility-scale and distributed solar facilities, and 12MW of biomass facilities.
Stoel Rives served as the legal advisor to Greenbacker for the deal and completion of the deal is subject to the approval from the regulatory authorities.
Set up in 2011, Greenbacker acquires and operates a diversified portfolio of sustainable infrastructure assets in North America.