Funds managed by affiliates of Apollo Global Management are to be invested in US Wind, which has the federal lease for up to 1300MW of offshore wind development off Maryland.
Apollo has committed to invest through convertible debt and equity up to $265m to acquire an equity stake in US Wind and fund development and construction costs associated with the offshore wind project.
The first phase of the project will have a capacity of 270MW and is anticipated to come online in early 2024.
Apollo senior partner and co-head of infrastructure and natural resources Geoffrey Strong said: “US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy.
“For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the firm’s strong commitment to sustainability.”
US Wind president Riccardo Toto said: “We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing development of our offshore wind projects.
“Apollo is a creative and dynamic partner, with global expertise, and together we believe we can make a positive impact on the energy transition in the United States.”
Apollo principal Brad Fierstein said: “We are pleased to work with Riccardo and the entire US Wind team to advance this important project to meet Maryland’s renewable energy goals, while creating high-quality jobs and driving significant local investment in the Baltimore area.”
Apollo said the US Wind investment extends its 30-year track record in which managed funds have invested more than $20bn in infrastructure-related opportunities across its platform.