Innergex achieves financial close for wind project in Texas

10 May 2019 (Last Updated May 10th, 2019 16:20)

Independent renewable power producer Innergex has secured $565.9m in construction financing and tax equity commitment for the Foard City wind project in Foard County, Texas, US.

Innergex achieves financial close for wind project in Texas
The Foard City wind project will have the capacity to generate nearly 1,230GWh of clean energy. Credit: Matt Artz on Unsplash.

Independent renewable power producer Innergex has secured $565.9m in construction financing and tax equity commitment for the Foard City wind project in Foard County, Texas, US.

The company closed $290.9m (C$388.7m) in financing from lenders Santander, MUFG, Zions Bancorp and the Royal Bank of Canada with a tax equity commitment of $275m (C$367.5m) being offered by Berkshire Hathaway Energy.

The company will receive a seven-year term loan facility of $23.3m (C$31.1m) with a ten-year amortisation period from the lenders on the commercial operation date. The facility will be built at an estimated cost of $384.8m (C$513.4m) and the project is expected to reach commercial operation later this year.

“Innergex is excited to secure financings which optimise the capital structure in a way that creates maximum value for our shareholders.”

Innergex president and CEO Michel Letellier said: “Foard City is the largest wind farm project ever built by Innergex and, with the Phoebe solar project under construction, will add almost 600MW of new installed capacity in the US by the end of 2019.

“The construction activities progress well on site and Innergex is excited to secure financings which optimise the capital structure in a way that creates maximum value for our shareholders.”

The Foard City wind project has already received permission to install 94 out of 130 wind turbines. A layout approval for the project is expected from the Federal Aviation Administration in the next few months.

Upon completion, the wind facility will have the capacity to generate nearly 1,230GWh of energy. The projected revenues and adjusted EBITDA are $20.1m (C$26.9m) and $10.1m (C$13.5m), respectively, for the first full year of operation.

Furthermore, the project will get 100% of the US production tax credits (PTCs) support, which represents $0.024 per kWh of electricity produced during the first ten years of operation.