Green investor Hannon Armstrong Sustainable Infrastructure Capital has invested in an onshore wind and utility-scale solar portfolio developed and managed by Clearway Energy Group.
Under the 1.6GW deal, Hannon Armstrong will hold a preferred equity interest in a number of holding companies owning the cash equity interests in individual portfolio operating projects and will participate in the cash flows from such projects.
Hannon Armstrong has funded approximately $200m (€161.6m) of its investment to date and anticipates funding the remaining portion in 2021 and 2022.
Once fully funded, Hannon Armstrong’s total investment in the portfolio will be approximately $663m.
The remaining ownership of cash equity interests in the holding companies will be held by Clearway Energy.
Clearway Energy Group will continue to manage the assets and provide operations and maintenance services.
Clearway is one of the largest developers and operators of clean energy in the United States with a pipeline of 9GW of renewable energy through 2022.
The large-scale, diversified, and highly contracted renewables portfolio includes 874MW of onshore wind, 192MW of utility-scale solar, and 557MW of utility-scale solar with 395MW of co-located storage (seven projects in total) located in four states: California, Hawaii, Texas, and West Virginia.
This includes the 192MW Rosamond Central solar project which is expected to commence operations by the end of the year.
Additionally, the parties amended the existing partnership agreement for the 419MW Mesquite Star wind farm (pictured) providing Clearway with an additional 27.51% of the project’s cash flows after the first half of 2031.
Hannon Armstrong chairman and chief executive Jeffrey Eckel said: “We are pleased to expand our relationship with Clearway Energy Group through a preferred equity investment in this portfolio of renewable assets.
“Clearway’s mission to accelerate the world’s transformation to a clean energy future is aligned with our purpose as a climate-positive investor.
“These assets will be a significant addition to our portfolio, offering increased scale and diversity to our business and supporting continued growth in recurring Net Investment Income,” added Eckel.
Clearway Energy Group chief executive Craig Cornelius added: “We are thrilled to partner with Hannon Armstrong on such an impactful portfolio transaction.
“This geographically diverse portfolio of wind, solar, and energy storage projects represents the economic opportunity of renewable energy in every corner of this country.
“Taken together, more than 2500 American jobs will be created to build and operate these clean energy assets, which will go on to supply clean low-cost power to hundreds of thousands of households and businesses across the United States.
“This agreement with our investment partners will be pivotal in Clearway’s continued ability to provide clean energy at the scale our country demands while helping to deliver on investors’ growing interest in climate change solutions.”