Ørsted closes $680 million in equity financing for solar and storage portfolio

AUSTIN, Texas, May 23, 2024 /PRNewswire/ — Today, Ørsted, a leading U.S. clean energy producer, announced an investment by JP Morgan in $680 million in the field of tax capital financing for a portfolio of photovoltaic and storage assets in Texas AND Arizona. The project portfolio consists of the Eleven Mile Solar Center, a 300 MW solar power project and a 300 MW/1,200 MWh storage facility in Pinal County, Arizona and Sparta Solar, a 250 MW solar project in Mineral, Texas.

This transaction represents one of the largest solar and storage tax equity transactions utilizing a combined Production Tax Credit (PTC) and Investment Tax Credit (ITC) since the passage of the Inflation Reduction Act (IRA) in August 2022. The Eleven Mile solar center will receive a one-time investment tax credit for its battery energy storage system, while the solar farm will generate production tax credits over a ten-year period.

The tax equity partnership with J.P. Morgan includes a tax credit carryover option. This new tax credit rollover option created by the IRA has opened up a new market for any corporate buyer to support clean energy projects and optimize their federal tax bills by purchasing tax credits.

“Örsted is an experienced developer and operator of renewable energy projects in the U.S., including offshore and onshore wind, solar and battery storage, all of which will provide tax benefits to investors.” he said James Giamarinocommercial director for America at Ørsted. “With this new market unlocked by the IRA, we are excited to continue our partnership with J.P. Morgan for tax equity and attract new entrants who want to grow the U.S. renewable energy industry, support job growth and promote local economic development.”

The tax equity investment will help finance the implementation of both projects, which include a total of 550 MW of photovoltaic capacity and 300 MW of batteries with a 4-hour discharge capacity (1,200 MWh). Commercial operations of both projects are expected to begin in 2024. The agreement also builds on JP Morgan’s existing investment in 1.8 GW of Ørsted’s total 5.7 GW onshore portfolio in the United States.

By the end of 2024, Ørsted will have a portfolio of photovoltaic projects generating 2 GW of power across the country. United States. Sparta Solar is part of the Helena Energy Center, a 518 MW wind and solar project in Bee County and Ørsted’s first joint wind-solar project. Additionally, the Eleven Mile Solar Center is Ørsted’s first project Arizona. Solar energy projects will make a cumulative contribution $125 million in tax revenues throughout the entire period of implementation of public service projects for local communities.

Latham & Watkins LLP served as legal advisor to Ørsted and Milbank LLP served as legal advisor to J.P. Morgan.

About Ørsted
Ørsted, a global leader in clean energy, develops, builds and operates offshore and onshore wind farms, solar farms, energy storage and bioenergy plants. Ørsted was the first energy company in the world to have a science-backed net zero target endorsed by the Science Based Targets Initiative (SBTi).

IN United Statesthe company has more than 700 employees and a growing portfolio of clean energy assets and partnerships that includes offshore wind, onshore wind, solar, storage technologies and e-fuels. Leader in the renewable energy industry in United States, Ørsted is a leader in the offshore wind industry and operates America’s first offshore wind farm located off the coast of Block Island. Ørsted has more than 5 gigawatts of total U.S. onshore capacity across wind, solar, storage and e-fuels technologies. To learn more about Ørsted’s operations in the US, visit nas.orsted.com or follow the company on Facebook, Instagram and Twitter (@ørstedUS).

SOURCE Ørsted