Private equity and infrastructure investment firm First Reserve has acquired from Mariah Acquisition the 230MW Mariah North wind power project in Texas.
The project is under construction and is expected to be operational by the end of 2016.
It will serve the high-demand ERCOT market in Parmer County, Texas, with a 13-year, fixed price hedge for its power production.
The project will also construct and own a 27-mile, 345kV transmission line to interconnect with the ERCOT CREZ system and is the first phase of an expected 600MW development.
The terms of the transaction were not disclosed.
Mariah Acquisition will continue to oversee project development and will partner with affiliate Harvest Energy Services to construct and operate the approximately $350m facility.
The developers will maintain a minority interest in the project during the operating period.
In addition, a turnkey engineering, procurement, and construction contract for the balance of the plant has been signed with Mortenson Construction, as well as a fixed-price operations and maintenance services and turbine supply agreement with General Electric.
Tax equity is being provided by MidAmerican Energy – backstopped by Berkshire Hathaway Energy – Citigroup, and HSBC, with a sale lease-back with Hannon Armstrong for the transmission facilities and rights of way.
First Reserve managing director and head of infrastructure funds Mark Florian said: “The Mariah North wind opportunity represents an extension of the model followed by many of First Reserve’s energy infrastructure investments, in which we have partnered with what we view to be solid counterparties with contractual structures designed to protect returns on behalf of our Limited Partners.”
Image: Morgue File
