UK-based solar energy firm Lightsource BP announced that it has successfully closed on a $250 million financing package for its Impact Solar project located in Lamar County, Texas, 120 miles northeast of Dallas.
The energy generated by the 260 MW Impact Solar project will be traded through a long-term agreement with BP. Construction of the project has been started by Swinerton Renewable Energy and the project is expected to reach commercial operation by the end of 2020.
The Impact Solar project is expected to create almost 300 jobs in construction, operations, maintenance and asset management. In addition, generation from this project is expected to provide clean, cost-effective energy for the equivalent of more than 34,000 homes in the Texas market and provide an offset of 268,675 metric tons of greenhouse gas emissions each year, comparable to taking over 57,000 fuel-burning cars off the road.
The senior debt facility for the project was provided by HSBC Bank USA, N.A. (HSBC) and National Westminster Bank PLC (NatWest). HSBC, acting as the Coordinating Lead Arranger and Joint Lead Arranger, is part of HSBC Group, one of the world’s largest banking and financial services organizations.
NatWest, acting as the Joint Lead Arranger, is a major retail and commercial bank and leading project financing lender in Europe and long-standing partner of Lightsource BP. Tax equity financing was secured from Bank of America. Lightsource BP engaged several advisory firms to close the transaction, including Norton Rose Fulbright as external legal counsel and CohnReznick Capital as the tax equity advisor.
Dev Sanyal, incoming EVP Gas and Low Carbon Energy, BP said:
“This project demonstrates that the competitiveness of solar energy means that power offtake structures widely and historically used for conventional generation are now gaining traction for solar energy projects. We see an exciting future from the increase in competitive renewable energy in the US power markets, and opportunities to integrate this with trading and customer capabilities.”
Nick Boyle, Lightsource BP’s Group CEO said:
“Our partnership with BP enables us to bring meaningful, large-scale solar projects such as this one in Texas to fruition. We are continuing to support the transition towards a lower carbon energy system by successfully advancing our solar energy projects across the globe.”
Kevin Smith, Lightsource BP’s CEO of the Americas said:
“At Lightsource BP we’re on a mission to rapidly accelerate the growth in renewable energy, while maximizing the environmental and local community benefits of each of our solar projects. We’re looking forward to working with our partners, suppliers and the community in Lamar County to bring this responsible solar approach to our project in Texas.”
Source: Press Release by Lightsource BP.