Lightsource BP is to sell electricity generated by the 240MW Bighorn solar farm in Colorado to Xcel Energy under a long-term power purchase agreement, moving the project one step closer to construction.
The project will be located on property in Pueblo owned by Evraz Rocky Mountain Steel, which will receive the electricity sold to Xcel Energy.
The partners’ agreement still requires final review by the Colorado Public Utilities Commission, the companies said.
Lightsource BP and project investors will invest an estimated $250m in Bighorn, with the former building, owning and operating the facility.
About 300 jobs are expected to be created in construction, operations, maintenance and asset management.
Bighorn will also contribute over $22m in property tax revenue over the project life, benefitting local schools, street maintenance, fire stations, parks and other community public services.
It is expected to come online by the end of 2021.
Xcel Energy Colorado president Alice Jackson said: “We’re thrilled to partner with Evraz North America and Lightsource BP, two companies committed to creating innovative solutions, while developing new solar energy sources within the state.
“Working together, we’re benefiting the environment and the local economy by retaining a valued company in southern Colorado.”
Evraz North America chief executive Skip Herald said: “This pioneering partnership with Xcel Energy and Lightsource BP marks a milestone for the development of our new rail mill and will make Evraz North America the industry leader in the use of renewable energy to produce the greenest steel and engineered steel products in the world, from rail to rod & bar.
“This long-term agreement is key to our investment in Colorado’s new sustainable economy.”
Lightsource BP chief executive Kevin Smith said: “Xcel Energy and Evraz North America have been excellent partners for Lightsource BP and we look forward to our continued collaboration as we bring this significant project online.
“The project highlights the tremendous potential that Colorado offers for large-scale solar and serves as a creative multi-stakeholder model to meet increasing demand for affordable, clean energy.
“We’re committed to building on this momentum and replicating this model across the US as we grow our suite of clean energy solutions that boost local economies.”