Dev Sanyal, incoming EVP Gas and Low Carbon Energy, BP, said, “This project demonstrates that the competitiveness of solar energy means that power offtake structures widely and historically used for conventional generation are now gaining traction for solar energy projects.”
“Our partnership with BP enables us to bring meaningful, large-scale solar projects such as this one in Texas to fruition,” Lightsource BP’s Group CEO Nick Boyle said. “We are continuing to support the transition towards a lower carbon energy system by successfully advancing our solar energy projects across the globe.”
Lightsource BP and project investors will fund an estimated $250 million into the solar plant. The senior debt facility for the project was provided by HSBC Bank USA, N.A. (HSBC) and National Westminster Bank PLC (NatWest). HSBC, acting as the Coordinating Lead Arranger and Joint Lead Arranger, is part of HSBC Group, one of the world’s largest banking and financial services organizations. NatWest, acting as the Joint Lead Arranger, is a major retail and commercial bank and leading project financing lender in Europe and long-standing partner of Lightsource BP. Tax equity financing was secured from Bank of America. Lightsource BP engaged several advisory firms to close the transaction, including Norton Rose Fulbright as external legal counsel and CohnReznick Capital as the tax equity advisor.
The project is expected to create almost 300 jobs in construction, operations, maintenance and asset management. In addition, generation from a project of this size and type would typically be expected to provide clean, cost-effective energy for the equivalent of more than 34,000 homes in the Texas market and provide an offset of 268,675 metric tons of greenhouse gas emissions each year, comparable to taking over 57,000 fuel-burning cars off the road.
Construction of the project has started with commercial operation expected by the end of 2020. Construction is being undertaken by Swinerton Renewable Energy.
At Lightsource BP, the health and well-being of our team members and partners is our top priority. We are actively monitoring updates regarding the Coronavirus (COVID-19) and are following precautions and guidelines provided by the CDC and public officials.
Lightsource BP is a 50:50 joint venture with BP.
