US-based utility-scale solar and storage projects developer Primergy Solar has secured a long-term offtake agreement for the entire output of its upcoming 408 MW AC project in Texas with Microsoft. The project will be accompanied by 300 MW battery storage capacity.
The tech giant sees the Ash Creek Solar Project in Hill County as contributing to its sustainability commitments and becoming carbon-negative by 2030. It follows the company signing up for the 127 MW DC/98.1 MW AC Bayou Galion Solar Plant of Recurrent Energy in Louisiana earlier this year (see Recurrent Energy Announces CPPA & Project Finance Raise).
Located near several existing fossil fuel plants and a high energy demand center, the 408 MW AC Ash Creek project is expected to generate enough clean energy to power close to 90,000 homes/year. It will be spread on close to 3,480 acres of rural lands with property owners collecting lease payments during the project's lifetime of an estimated 30 years.
SOLV Energy is currently constructing the project that was originally developed by Orion Power Generation, LLC. Primergy expects the facility to contribute an estimated $100 million in tax commitments to the local county.
Primergy also announced securing $588 million debt financing commitments for the facility, including a construction loan, tax credit transfer bridge loan and related letters of credit.
Financing is led by MUFG Bank, Ltd. and SMBC as lead structuring arrangers and seven coordinating lead arrangers ("CLAs") including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.
Rabobank is a repeat financier for Primergy. Previously, the bank contributed $75 million for the company's solar and storage projects in December 2022 (see Primergy Solar Secures $75 Million In Financing).