Financial close for 328 MW wind project in the USA

Innergex Renewable Energy has closed construction financing and tax equity commitment for the 328 MW Foard City wind project to be located in Foard County, Texas.

Innergex secured US$290.9 million from lenders including Santander, MUFG, Zions Bancorp and the Royal Bank of Canada.

The financing was also backed by a US$275 million tax equity commitment from Berkshire Hathaway Energy and a 7-year term loan facility of US$23.3 million to be provided by the lenders after the project achieves commercial operation.

Innergex expects to receive the approval of a layout for the wind farm from the Federal Aviation Administration in the coming months. Until now, 94 turbines out of the 130 have already received their approval.

The construction cost of the wind farm is expected to be US$384.8 million and the project is expected to reach commercial operation in the fall of 2019. When operational, the facility will generate about 1,230 GWh of clean electricity per year.

The project will benefit from 100% US Production Tax Credits (PTCs), representing US$0.024 per kWh of electricity generated for the first 10 years of operations. This amounts to an after-tax benefit of about US$29.5 million per year adjusted to inflation.

“Foard City is the largest wind farm project ever built by Innergex and, with the Phoebe solar project under construction, will add almost 600 MW of new installed capacity in the United States by the end of 2019,” said Michel Letellier, President and Chief Executive Officer of Innergex. “The construction activities progress well on site and Innergex is excited to secure financings which optimize the capital structure in a way that creates maximum value for our shareholders.”