US$268 million financing secured for construction of Oklahoma wind farm
Quinbrook Infrastructure Partners and GE have announced that the Quinbrook Low Carbon Power Fund has closed construction and tax equity financing of the 200 MW first stage of the 365 MW Persimmon wind farm project in Oklahoma, USA.
Quinbrook recently acquired a 75% controlling equity stake in the project and formed a joint venture with the initial developer Elawan Wind (formerly Gestamp Wind), an independent wind power producer currently operating in Spain, Belgium, Poland, Brazil, USA, Mexico, Turkey and South Africa with an operational portfolio of over 1000 MW.
It has been agreed that the Persimmon wind farm will supply power to the Southwest Power Pool network in Oklahoma, once operational. A total of 365 MW will be brought online in two phases. The first phase is 200 MW, with completion and first generation scheduled for mid-2018.
GE Renewable Energy will supply the turbines for the project: 73 of its 2.5 MW turbines and seven 2.3 MW turbines.
GE Energy Financial Services, the energy investing unit of GE, has committed to provide over US$190 million of tax equity financing to the project and served as bookrunner, administrative agent and lender for US$252 million of credit facilities. GE Energy Financial Services arranged financing from CIT, MUFG and Rabobank, who were the joint lead arrangers on the transaction.
Quinbrook anticipate that the project will start generating cash returns for their investors from the middle of this year.
The Quinbrook and Elawan teams have reportedly secured long-term offtake commitments with an investment grade counterparty to support the overall financing. Neither company has confirmed the details of these deals.
Once operational, Persimmon is expected to generate nearly 900,000 MWh of zero emissions renewable power every year—equivalent to offsetting 630,000 metric tons of carbon dioxide annually.
This project contributes to Quinbrook's substantial wind portfolio, which now exceeds 2 GW. Furthermore, it will add to Oklahoma's impressive 6,645 MW of operational wind power, the third highest of all US states.
