Orsted has acquired a 227MW photovoltaic project in the US state of Alabama from developer Longroad Energy.
The Muscle Shoals solar project, under construction, is located in Colbert County.
Muscle Shoals is expected to come online in third quarter 2021. Longroad Energy will manage the construction.
First Solar is supplying the modules for the project.
Concurrent to the acquisition, Orsted has entered into a tax equity funding commitment with Wells Fargo bank.
With the acquisition of Muscle Shoals, Orsted will have 647MW of solar under construction and 40MW of storage capacity.
Orsted’s first solar project under construction in the US is the Permian Energy Center solar-plus-storage project in Texas.
Muscle Shoals is fully contracted under 20-year long-term power purchase agreement with the Tennessee Value Authority.
Orsted senior vice president and onshore chief financial officer Vishal Kapadia said: “The acquisition of Muscle Shoals continues the expansion of our solar portfolio and further diversifies the geographic footprint of our asset base by establishing a foothold in the rapidly growing Southeast solar market.
“Once complete, Muscle Shoals will deliver high-quality contracted revenues that will provide Orsted an attractive incremental source of stable earnings.”
Muscle Shoals Solar project is expected to employ 300 people during the peak of construction activities.
During construction, more than $1m in tax revenue is expected to be generated.
Longroad chief investment officer Charles Spiliotis said: “Closing renewable energy projects in the face of the global pandemic is a testament to the quality of the project, our team’s capabilities in development and financing, and our track record of delivering high quality, competitive investments.”