Italian energy company Eni is to work with Falck Renewables to jointly develop at least 1GW of clean energy projects in the US by 2023.
A strategic agreement between the two companies involves the creation of a 50:50 joint venture owned by Eni New Energy US and Falck Renewables North America.
Under the terms of the agreement, Falck will also sell Eni New Energy US 49% of its ownership interests in the plants currently in operation in the US.
This comprises a 112.5MW portfolio of five solar plants in North Carolina and Massachusetts, one of which includes 6.6 megawatt-hours of energy storage.
The plants will continue to be operated, controlled and consolidated by Falck, which will own 51% of them.
Eni will pay about $70m, including a solar panel stock valued at approximately $12.7m
Closing is subject to certain conditions precedent and is expected by the first quarter of 2020.
The JV aims to establish a platform for the development of new clean power combining Falck Renewables’ know-how in renewable assets together with Eni’s technological and financial capabilities.
The partners also aim to accelerate the growth of Eni and Falck Renewables in the US.
They will have various options to acquire projects from the venture, either consolidated line-by-line by Eni (100%) or by Falck (100% or with a minority 49% stake for Eni).
Funding will be split equally between the owners.
Eni Energy Solutions executive vice president Luca Cosentino said: “For Eni, the agreement with Falck Renewables opens up a new, low-risk and highly fluid market in which we are aiming to grow very quickly.
“This partnership will benefit from the knowledge and renowned experience of Falck Renewables, enabling Eni to accelerate its plans to increase its renewable energy capacity and laying the foundations for achieving our decarbonisation objectives.”
Falck Renewables chief executive Toni Volpe said: “We are excited to start working in a targeted way with Eni, which like us wants to contribute to the energy transition and be a key player in the renewables sector.
“We are really interested in bringing together the two companies’ capabilities and ambitions to create an agile and focused development company, with clear objectives in one of the world’s most dynamic and high-potential markets.”
Meanwhile, Falck has achieved final funding of tax equity from US Bancorp Community Development Corporation for the 6.6MWh storage system, which is located at the Middleton solar farm in Massachusetts.
The bank is providing a minority percentage of the $3.6m project, including all equipment, engineering and construction services and development costs.
NEC Energy Solutions provided the battery for the project.