Funding and M&A Roundup: Battery Manufacturer Northvolt Secures $5 Billion Loan

Leeward Renewable Energy, a solar, wind, and energy storage project developer, closed $580 million of tax equity commitments and debt facilities for its White Wing Ranch Solar and GSG Wind projects located in Yuma County, Arizona, and LaSalle County, Illinois. The tax equity commitment was secured from Wells Fargo Bank, and the debt facility was provided by Mizuho Bank, National Bank of Canada, Société Générale, and Sumitomo Mitsui Trust Bank.

The 179 MW White Wing Ranch Solar project is expected to be operational in the second half of 2024, and onsite construction has been underway. The repowered GSG Wind is expected to be operational in December 2023.

Andrew Kho, Managing Director with Wells Fargo Renewable Energy & Environmental Finance, said, “Wells Fargo is pleased to provide tax equity financing for White Wing Ranch Solar and GSG Wind as LRE continues to expand its renewable energy platform. Providing expertise and capital to renewable energy projects supports our goal of deploying $500 billion in sustainable financing by 2030, helping customers and communities transition to a resilient, equitable, and sustainable future.”

“Renewable energy will play a critical role in advancing energy transition in the U.S.,” said Rahul D. Shah, Head of Project Finance at Mizuho Americas. “Mizuho is pleased to support the growth of LRE’s renewable energy portfolio and is committed to providing our clients with strategic and financing solutions to help achieve their goals.”

According to Mercom’s 9M and Q3 2023, Solar Funding and M&A Report announced large-scale project funding in the first nine months of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.

Recently, Arevon Energy, a solar and storage project developer, closed the financing on the Vikings solar-plus-storage project with a combination of debt financing and tax credit transfer. The company secured a commitment with J.P. Morgan to purchase $191 million in investment tax credits and production tax credits leveraging the Inflation Reduction Act’s transferability provision.