Ashtrom Renewable Energy, a global independent power-producer and renewable-energy developer, has signed a $270 million green financing package with a group of five banks for its Tierra Bonita Solar project in Texas.
The Tierra Bonita project is located on a 2,400-acre site in Pecos County, Texas, with a planned capacity of 400 megawatts dc. The project is expected to reduce carbon dioxide emissions by more than 500,000 tons per year. It is currently under construction and is expected to reach commercial operations expected by fourth quarter 2024.
This was one of the first solar projects to complete a Tax Credit Transfer Agreement (TCTA) for solar production tax credits (PTC) under the Inflation Reduction Act (IRA). Ashtrom will sell the PTC to be produced by the project over a 10-year period to a highly rated U.S. institutional entity. The total value of the PTC is estimated at $300 million.
“The financial closing of the Tierra Bonita project marks a signific