From natural gas marketing to solar energy, Macquarie Energy

Macquarie, the Houston company accused of market manipulation of natural gas prices in Kansas and Oklahoma during the 2021 winter storm, is investing millions in solar energy.

As reported Business cable this week, Macquarie Group’s asset management arm is backing renewable energy company Sol Systems with an $85 million debt investment, driven by a wave of green energy demand in the US.

The funds will be used to build and operate five utility-scale solar projects in Illinois and Ohio. Based in Washington, Sol plans to complete the work by the end of next year.

Macquarie Asset Management and Sol Systems jointly announced an $85 million debt investment to support the construction and operation of five utility-scale solar projects located in Illinois and Ohio. The investment is the first tranche of planned broader cooperation between the company

Sol Systems is a leading national renewable energy company focused on implementing sustainable infrastructure with impact. The company recently announced partnerships with Microsoft, Google, FedEx, REI and other large corporations to help them achieve their sustainability goals and benefit surrounding communities. The company was founded in 2008 and is supported by KKR.

Macquarie Asset Management provided the investment on a fully bilateral basis in the form of a six-year loan. The facility is subordinated to senior debt and tax equity and is hedged against Sol Systems’ interests in the underlying solar projects. The projects are expected to be completed by the end of 2025, and once operational, all projects will generate revenue through long-term, fixed-price power purchase agreements with a leading, highly creditworthy software services provider.

“We are excited to begin our partnership with Sol Systems,” said Harlan Cherniak, director of infrastructure debt for the Americas at Macquarie Asset Management. “The investment is consistent with our strategy of providing tailored capital structure solutions to leading financial partners, strategic infrastructure sponsors and their portfolio companies, and our ongoing commitment to accelerating the decarbonization of the U.S. power and transmission grid.”

“We are thrilled to partner with an infrastructure finance leader like Macquarie Asset Management to complete this incredibly creative transaction,” said James Machulak, senior vice president of finance and operations at Sol Systems. “The funding will help Sol Systems continue to work towards its goal of accelerating a just transition towards a sustainable energy future.”

Since its founding in 2012, the Macquarie Asset Management Private Credit team has raised over $23 billion in client commitments and made over 165 debt investments globally, spanning a range of sub-sectors including renewable energy, energy and utilities, digital infrastructure and transport .

Since 2008, Sol Systems has financed or developed over $2 billion in solar projects, operates and builds over 2 GW of projects, and serves over 40,000 customers across its Environmental Commodities and Infrastructure Solutions businesses.

Marcquarie remains the target of lawsuits from the Kansas attorney general over high natural gas prices during the 2021 winter storm that hit the Midwest and South. Marcquarie was also the top natural gas seller in Oklahoma during the storm, when prices rose from $2-3 per Mcf of natural gas to over $1,200 – the highest natural gas price on record in the U.S.