Longroad Energy Holdings has announced a multi-million dollar equity investment to accelerate the expansion of its wind, solar and storage portfolio from 1500MW to 8500MW in the next five years.
The US$500m (€487.7m) investment was made by MEAG, acting as asset management arm for entities of Munich Re, alongside two of the company’s existing investors, the NZ Super Fund and Infratil, a listed entity managed by Morrison & Co.
The investment will also support Longroad’s strategic shift from a primarily “develop to sell” business model to one that is more oriented towards ownership.
Longroad chief executive Paul Gaynor said: “This important infusion provides Longroad with the capital to rapidly transition to a strategy biased to asset ownership.
“It also will fuel our acquisition goals and continue to support our investments in adjacent sectors, as we did recently with Valta Energy in the DG space.
“We are thrilled to have MEAG join with our existing investors to power our robust growth plans, and we appreciate their collective support as we make strides in implementing our ambitious near-term objectives.”
MEAG’s senior investment manager responsible for US infrastructure investments Alexander Poll added: “This investment is a significant step to further increase the US renewable portfolio for Munich Re.
“Given Munich Re’s strong position in the U.S. insurance market, we are interested in further investing in the United States.”
In addition to its 1500MW net ownership operating portfolio, Longroad’s track record includes 3200MW of developed and acquired projects.
Longroad has a substantial development pipeline of ~15GW of wind, solar and storage projects across 13 states, including in key growth markets such as Arizona, California, Hawaii, Maine, and Utah.