Oklahoma Wind Farm Receives $220 Million Investment
Clean Edge News
Enel Green Power North America, a subsidiary of Enel Green Power S.p.A., and EFS Chisholm, a GE Capital subsidiary, signed a capital contribution agreement with a syndicate led by J.P. Morgan, whereby the syndicate commits to funding approximately 220 million US dollars for the 235 MW Chisholm View Wind project in Garfield and Grant Counties, Oklahoma. The syndicate also includes Wells Fargo Wind Holdings and Metropolitan Life Insurance Company. The syndicate will release funds in the fourth quarter of 2012, subject to fulfilment of requirements outlined in the capital contribution agreement, at which point a tax equity agreement will be signed by the parties. The project is supported by a long-term power purchase agreement.
EGP-NA owns and operates renewable energy plants either in operation or under development in 21 states and three Canadian provinces. The company owns and operates more than 70 plants with an installed capacity totalling 1,088 MW powered by renewable hydropower, wind, geothermal, solar and biomass energy. EGP generated 22.5 billion kWh in 2011 from water, sun, wind and the Earth’s heat - enough to meet the energy needs of more than 8 million households and avoid the emission of over 16 million tons of CO2 into the atmosphere.
EFS Chisholm LLC holds a 51% cash equity stake in the project, and EGP-NA holds the remaining 49%. EGP-NA has an option to purchase 26% of EFS Chisholm’s interest in 2012 and 2013. Tax equity agreements under US fiscal law allocate tax benefits from renewable energy generation companies to passive investors. Under the tax equity agreement that will be entered into with the above mentioned syndicate, the latter will make a cash contribution of an overall amount of approximately 220 million US dollars to the Chisholm View project jointly owned by EGP-NA and EFS Chisholm in return for an equity interest with voting rights. This equity interest will allow the syndicate to obtain a percentage of the fiscal benefits attributed to the Chisholm View project.