Quinbrook announces tax equity, construction financing for Persimmon wind farm
Quinbrook Infrastructure Partners closed a $268 million tax equity and construction financing deal on Tuesday that will pave the way for the 200 megawatt (MW) wind project in Oklahoma known as “Persimmon.”
Quinbrook previously secured a 75 percent controlling ownership stake in the wind farm in a joint venture with Elawan Wind, formerly known as Gestamp Wind. The first of the project’s two phases, which is slated for completion in mid-2018, will bring 200 MW to Oklahoma’s Southwest Power Pool network.
The project’s wind turbine supplier is GE Renewable Energy, which will provide 73 2.5 MW turbines and seven 2.3 MW turbines. And GE Energy Financial Services has agreed to provide $190 million of tax equity financing for the project and will operate as bookrunner, administrative agent, and lender for $252 million of credit facilities.
“The Persimmon wind project is the perfect addition to Quinbrook’s growing wind portfolio, which now exceeds two gigawatts,” Shawn Cumberland, senior managing director at Quinbrook, said. “We have also found an ideal partner in Elawan, who have successfully developed the project over several years in one of the US’ strongest wind regimes, Oklahoma. As partners, we have successfully navigated the many challenges arising from the recent US tax reform legislation and secured a very competitive financing package led by GE, as well as long term offtake commitments with a first-rate counterparty.”
Cumberland added that GE Renewable Energy is a “proven leader” in wind turbine technology and that Elawan is an “accomplished developer” of wind projects.
“The first stage of Persimmon represents a critical step in building out Quinbrook’s large-scale wind portfolio in the US, which will start generating cash returns for our investors from the middle of this year,” Cumberland said.
Elawan Wind CEO Javier Mateache said Quinbrook has added “tremendous value” to the project.
“It’s an exciting time to be involved in the wind industry as it continues to expand its reach in the U.S.,” he said. “We’re honored to be undertaking this project with collaborators such as GE and Quinbrook who share our dedication to renewable energy.”
The Persimmon wind farm is expected to generate approximately 900 megawatt hours each year when completed, offsetting an estimated 630,000 metric tons of carbon dioxide annually.
