Repsol has signed an agreement to acquire 40% of US solar and storage developer Hecate Energy, as part of efforts to diversify its renewables business.
The acquisition of a stake in Hecate Energy is Repsol’s first foray into the US renewables market.
Hecate Energy, based in Chicago, has a portfolio of renewable projects totalling more than 40GW, out of which 16.8GW are PV projects with energy storage in advanced stages of development.
The company also participates in Hecate Grid, a battery platform for energy storage with a capacity of 4.3GW.
Repsol will have the option of acquiring Hecate Energy’s outstanding shares three years after the closing of this transaction.
Most of Hecate Energy’s assets are located in the US electricity markets Electric Reliability Council of Texas (ERCOT), Western Electricity Coordinating Council (WECC), and PJM Interconnection that are projected to grow substantially in the coming decade due to the emissions reduction objectives set in the respective states, said Repsol.
Founded in 2012, Hecate has so far sold 2.6GW of renewable projects.
The transaction represents a “substantial leap forward” for Repsol towards achieving the goals of low-emission generation capacity and the internationalisation of this business set out in the company’s 2021-2025 Strategic Plan.
The plan outlines the target of reaching a generation capacity of 7.5GW in 2025 and 15GW in 2030.
The United States is the second renewables market that Repsol entered outside Spain, following the signing in July 2020 of an agreement with the Ibereólica Renovables Group.
This gave Repsol access to a portfolio of projects in Chile in operation, construction, or development, with more than 1600MW until 2025 and the possibility of exceeding 2600MW by 2030.
Repsol executive managing director of client and low carbon generation Maria Victoria Zingoni said: “With this acquisition we enter the US renewable market with the best possible partner and advance our strategic objective of becoming a global low-emissions operator.
We continue to demonstrate our commitment to multi-energy and move forward with the transformation of Repsol into a net zero emissions company.”