Pine Gate Renewables, a solar project developer, has secured a $500 million investment from Generate Capital, a sustainable infrastructure investment firm.
The investment includes a $200 million equity investment and a $300 million commitment for a long-term asset partnership for solar project financing.
The investment provides the company with additional capital to fund the construction and development of renewable energy projects and meet other general working capital purposes. Generate will also join Pine Gate’s Board of Directors.
Pine Gate owns and operates over 1 GW of renewable energy projects, has more than 20 GW in active development projects throughout the U.S. and has raised over $1 billion in corporate and project capital financing in the past six months.
Foley& Lardner acted as legal advisor for Generate Capital, and DNV GL acted as technical adviser for this transaction. For Pine Gate, Lazard served as financial adviser and Gibson, Dunn & Crutcher as legal adviser.
“Pine Gate is thrilled to be partnering with Generate to accelerate the growth of our business,” said Ben Catt, chief executive of Pine Gate.
“Solar is the world’s most affordable energy source today and is a significant opportunity for Generate as utilities adapt to the strong demand from customers for more renewable resources,” said Scott Jacobs, chief executive and co-founder of Generate.
Earlier this year, Pine Gate Renewables had secured a $500 million credit facility from Fundamental Renewables to finance the development and construction of its utility-scale solar and storage projects across the U.S.
According to Mercom’s Q1 2022 solar funding and M&A report, total corporate funding—including venture capital (VC) funding, public market, and debt financing—into the solar sector in Q1 2022 came to $7.5 billion in 49 deals, a 51% increase compared to $5 billion raised in 32 deals in Q4 2021. However, funding was lower by 7% year-over-year (YoY) compared to Q1 2021.
Image Courtesy: Generate Capital