US renewable energy developer Longroad Energy has reached financial close and started construction of the 243MW El Campo wind farm in Knox County, Texas.
Longroad also announced that two Danish pension funds PKA and PenSam, represented by investment manager AIP, have become investors in the project.
Vestas will supply 67 turbines ranging in size from 2.0MW to 4.2MW each, while Mortenson is building the wind farm under an EPC agreement.
The total cost of the project is approximately $335m, with commercial operation expected by July 2020.
BHE Renewables is the sole tax equity investor, while the lending group is led by KeyBank and also includes HSBC Bank, CIBC, and Zions Bancorporation.
The project will contribute nearly $20m in property taxes to the Benjamin Independent School District, Knox County, Knox County Hospital District and other local taxing authorities.
Approximately 200 people will be employed during construction, with eight full-time staff managing the day to day operations of the facility, once operational.
Longroad chief executive Paul Gaynor said: “Longroad is pleased to bring this deal through this crucial step and to partner with PKA and PenSam through AIP.
“We are proud of our track record in developing, financing, constructing, owning and operating well-structured renewable assets in the US.
“This approach appealed to AIP and its investors; and the investment in El Campo is a great first step to take with our new partners.
“It’s great to be able to work with high caliber groups such as PKA, PenSam, and AIP. We hope this is the first of many partnerships with this team in the US.”
PKA chief investment officer Michael Nellemann Pedersen said: “The El Campo wind farm is our second sizeable investment in renewable assets in the US within a year and it represents yet another important addition to our ambitious green investment strategy
“We are delighted to partner with an experienced renewable energy developer like Longroad Energy and we are optimistic about extending the partnership even further in the future.”
PenSam CIO Claus Jorgensen said: “A project of this size fits our portfolio very well and provides future cash flows from a contract with offtakers committed to purchasing renewable energy.
“We are proud to contribute to this investment and thankful for the support of our execution partners, AIP and Longroad Energy for securing affordable clean renewable energy.”
The project has already secured two corporate power purchase agreements – one for 83MW is with DaVita, while Crown Holdings will take 111MW.