CleanCapital, a clean energy investment company, acquired 100% ownership stakes in BQ Energy (BQE), a landfill and brownfield renewable energy development company.
The acquisition includes about 300 MW of late-stage development solar projects and more than 700 MW of mid-stage development solar projects. CleanCapital will fund these projects at various development stages, deploy capital to projects that advance the energy transition, and put underutilized and polluted land to new use with myriad climate and community-related benefits.
Kirkland&Ellis acted as buyer’s counsel for this transaction for CleanCapital. McDermott Will&Emergy represented BQ Energy. Marathon Capital served as the exclusive buy-side advisor to CleanCapital on the transaction. Plexus Solutions advised BQ Energy on the transaction.
Thomas Byrne, CEO of CleanCapital, said ”BQE finds land left in environmental disrepair and gives it new life with on-site clean energy projects, doubling the climate-related impact of these assets. We are excited to welcome their exceptional team into the CleanCapital family.”
“Over the last 15 years of operations, BQE has successfully developed projects sited exclusively on landfills and brownfields, becoming a leader in this sector. That track record, along with the popularity of this brownfield redevelopment concept among diverse stakeholders, means we are uniquely positioned to take advantage of the considerable opportunities in this space,” said Paul Curran, Chief Executive Officer of BQ Energy. “Working under the CleanCapital umbrella provides tremendous synergies for our teams. With CleanCapital’s financial backing, our development team can focus on what they are great at – rather than raising capital piecemeal. We can get more brownfield solar projects developed and built.”
This acquisition, along with a 65 MW acquisition announced in February, is part of a series of investments that followed CleanCapital’s $300 million commitment from Manulife announced last year. CleanCapital has acquired and managed 200 projects in 24 states totaling more than 300 MW. Its cumulative acquisitions total more than $800 million, solidifying its position as one of the top ten commercial solar asset owners in the U.S.
According to Mercom’s Q1 2022 Solar Funding and M&A Report, 29 solar M&A transactions were recorded in Q1 2022 compared to 43 in Q4 2021. In a YoY comparison, there were 20 solar M&A transactions in Q1 2021.