$2.4 Billion Funding Milestone Achieved by SB Energy for US 1.3GW Solar Portfolio
US-based renewable energy investor SB Energy has successfully raised a substantial $2.4 billion to fund the development of 1.3 GW of new solar capacity across the United States. This significant financial milestone is set to bolster the country’s renewable energy infrastructure and contribute to its clean energy goals.
The funding package is composed of various financial instruments, including $800 million in tax equity, sourced from four prominent US lenders: Bank of America, J.P. Morgan, Morgan Stanley Renewables, and Truist Bank. Additionally, the funding includes $1.2 billion in construction debt and $450 million in term debt. This latter portion was secured from a diverse group of international financiers, including US bank Fifth Third Bank, the Canadian Imperial Bank of Commerce, Dutch bank ING, French investor Société Générale, and Asian financial institutions MUFG, the Sumitomo Mitsui Banking Corporation, and Mizuho Americas.
While specific timelines for the construction and commissioning of the projects, named Eiffel I and Orion I-III, have not been disclosed by SB Energy, the company has confirmed a significant power purchase agreement (PPA) with Google. Under this agreement, Google will acquire 75% of the electricity generated by the entire portfolio, which will be used to power one of its data centers in Texas.
Todd Karas, head of renewable energy finance at Bank of America, expressed enthusiasm about the collaboration with SB Energy, emphasizing the project’s role in fostering American job growth in a sustainable manner, particularly in communities historically involved in the country’s energy sector.
The portfolio is particularly noteworthy as it includes three projects that are the first utility-scale facilities in the US to achieve financial closure with a domestic content adder. This provision, part of the landmark Inflation Reduction Act (IRA), offers a 10% tax credit to renewable project developers who predominantly use materials and components manufactured in the US.
SB Energy has announced that the projects will utilize 1.1 million solar modules manufactured in Ohio by First Solar. Additionally, Nextracker will supply trackers, and the steel used across the portfolio will be sourced from Georgia and Texas. The specific products from First Solar and Nextracker to be used in the projects have not been detailed, but their inclusion underscores the IRA’s potential to significantly transform the US energy mix and supply chain.
Rich Hossfeld, co-CEO of SB Energy, highlighted the IRA’s role in these developments, noting its design to expand America’s manufacturing base and create well-paying jobs in communities in need. This funding and the subsequent projects represent a significant step forward in the US’s journey towards a more sustainable and domestically supported renewable energy sector.
