Longroad Energy, a U.S.-based renewable energy developer, owner and operator, has achieved the financial close and commenced construction on its El Campo wind farm in Knox County, Texas.
The two Danish pension funds PKA and PenSam, represented by their investment manager AIP, also became long-term investors alongside Longroad.
The project is one of the largest investments ever made in Knox County — the total cost of the project is approximately $335 million, and it is expected to achieve commercial operation by July of 2020.
The project will contribute nearly $20 million in property taxes to the Benjamin Independent School District, Knox County, Knox County Hospital District, and other local taxing authorities. The El Campo project is expecting to provide employment for approximately 200 people during construction. Eight full-time staff will manage the day-to-day operations of the facility.
“The El Campo wind farm is our second sizeable investment in renewable assets in the U.S. within a year, and it represents yet another important addition to our ambitious green investment strategy,” said Michael Nellemann Pedersen, CIO of PKA. “We are delighted to partner with an experienced renewable energy developer like Longroad Energy, and we are optimistic about extending the partnership even further in the future.”
The project has two corporate PPAs: DaVita Inc. has signed a power purchase agreement (PPA) for 83 megawatts, while Crown Holdings will take 111 megawatts in its PPA. Vestas American Wind Technology will supply 67 wind turbines ranging in size from 2.0 megawatts to 4.2 megawatts each, and the project will be built by Mortenson under an EPC agreement.
BHE Renewables is the sole tax equity investor. The lending group is led by KeyBank N.A. and includes HSBC Bank, CIBC, and Zions Bancorporation, N.A.
Longroad Energy’s affiliate, Longroad Energy Services, will provide construction management, asset management, operations and maintenance, and remote monitoring services to the project over a 20-year term.
