Lightsource BP has successfully closed on a $285 million financing package for its 300MW Bighorn Solar project, which will be located on EVRAZ Rocky Mountain Steel mill property in Pueblo, Colorado, and begun construction.
Lightsource BP has secured tax equity financing for the project from Bank of America.
The debt for the facility was provided by the Mandated Lead Arrangers, Sumitomo Mitsui Banking Corporation, Societe Generale and Export Development Canada, Canada’s export credit agency.
The balance of the equity requirements will be invested by Lightsource BP.
Commercial operation is expected by late 2021, with construction to be carried out by engineering, procurement, and construction (EPC) contractor McCarthy Building Companies.
McCarthy Building Companies will install nearly 750,000 Canadian Solar bifacial solar panels on approximately 1,600 acres of land located on the EVRAZ steel mill site with some supplemental land provided by the City of Pueblo and private landowners.
The project will supply power to Xcel Energy, the electrical provider for the steel mill, under a long-term contract.
EVRAZ said that the competitive price of solar energy and its long-term budget certainty helps to ensure that the steel mill, along with 1,000 local workers, will remain in Pueblo.
Colorado Governor Jared Polis said: “This collaborative project will not only bring more jobs to Pueblo, but also supports Colorado’s goal of reaching 100% renewable energy by 2040.
“The EVRAZ steel mill is a staple of Pueblo’s incredible history and will now also serve as a pillar of our state’s clean energy future.”
Lightsource BP Americas chief executive Kevin Smith said: “Partnership with these leading investment institutions enables us to work together to achieve our shared ambitions for a sustainable and profitable future.
“With their support, along with that of our local partners, we’re materially benefitting the environment as well as Colorado’s economy – delivering affordable and clean energy that the world demands and needs.”
Xcel Energy Colorado president Alice Jackson said: “We are excited to see Lightsource BP taking the next step toward building the Bighorn Solar project. This collaboration between Xcel Energy, EVRAZ North America and Lightsource BP is proof that when innovative companies work together we can create jobs, stimulate economic growth, and support our communities and the environment.”
EVRAZ North America president and chief executive Skip Herald congratulated Lightsource BP on reaching the milestone, and said it would be the first steel mill in North America to rely on solar power.
CohnReznick Capital was engaged as the tax equity advisor for the project.