Danish company Ørsted is set to the acquire the 227MW AC Muscle Shoals solar project, under construction in the US.
Located in Colbert County, Alabama, Muscle Shoals will use solar panels supplied by First Solar. The project will come online in the third quarter of next year.
This is Ørsted’s second project in the US. It follows the company’s decision in November last year to begin construction on the Permian Energy Center solar plus storage project in Texas.
In the US, Ørsted will have a combined generation capacity of 647MW AC, with 40MW AC of storage.
Ørsted onshore senior vice-president and CFO Vishal Kapadia said: “The acquisition of Muscle Shoals continues the expansion of our solar portfolio and further diversifies the geographic footprint of our asset base by establishing a foothold in the rapidly growing southeast solar market.
“Once complete, Muscle Shoals will deliver high-quality contracted revenues that will provide Ørsted an attractive incremental source of stable earnings.”
The project is said to be fully contracted under a long-term power purchase agreement with the Tennessee Value Authority.
With this acquisition, Ørsted simultaneously entered into a tax equity funding commitment with Wells Fargo. Financial details of the deal have not been divulged by both the companies.
In April this year, Ørsted announced the completion of the 338MW Sage Draw wind project in Texas.
Spread across the Garza and Lynn counties, the wind farm is equipped with 120 wind turbines. It is expected to generate enough clean energy that will be sufficient to meet the electricity needs of 120,000 households in the US.