Pattern Energy Breaks Ground on $11 bn Clean Energy Project – EQ
In Short : Pattern Energy initiates the construction of an $11 billion clean energy project. This significant investment likely involves the development of renewable energy infrastructure, contributing to the expansion of clean power generation and sustainable initiatives.
In Detail : Pattern Energy has sealed an $11 billion non-recourse financing deal and launched the construction of SunZia Transmission and SunZia Wind. This initiative marks the largest clean energy infrastructure project in U.S. history.
The SunZia Transmission, spanning 550 miles with a ± 525 kV high-voltage direct current (HVDC) transmission line, links central New Mexico to south-central Arizona. It boasts the capability to carry 3,000 MW of clean, dependable, and cost-effective electricity across Western states.
This transmission line will transport clean power generated by Pattern Energy’s 3,515 MW SunZia Wind facility, set to become the largest wind project in the Western Hemisphere. The wind farm is underway across Torrance, Lincoln, and San Miguel Counties in New Mexico.
The groundbreaking financing structure encompasses an array of financial instruments, including an integrated construction loan, letter of credit facility, term facilities, tax equity term loan facility, and a holding company loan facility.
Hunter Armistead, CEO of Pattern Energy, expressed, “Our success in securing financing for the largest clean energy infrastructure project in American history sets a precedent for other ambitious renewable initiatives crucial to hastening our transition to a carbon-free future.”
The financing consortium for the approximately $8.8 billion construction and term facilities comprises a notable list of financial institutions acting as Coordinating Lead Arrangers and Joint Bookrunners, Coordinating Lead Arrangers, co-syndication agents, Administrative Agent, and Green Loan Structuring Agents.
A consortium of financial institutions including BNP Paribas, Crédit Agricole Corporate and Investment Bank, and others acted as Initial Coordinating Lead Arrangers and Joint Bookrunners for the $8.8 billion construction and term facilities.
Moreover, the financings were structured as green loan facilities, aligning with the Green Loan Principles, with several institutions playing key roles as Co-Green Loan Structuring Agents.
The project’s various financing components were overseen by a lineup of legal counsels representing different parties involved, underlining the complexity and scale of this landmark venture.
The SunZia initiative is set to engage over 2,000 workers during the construction phase, offering employment to a diverse range of skilled professionals. Industry giants like Quanta Infrastructure Services Group, Hitachi Energy, Blattner Energy, GE Vernova, and Vestas are actively contributing their expertise and technology to ensure the project’s success.
Additionally, Pattern Energy has collaborated with the New Mexico Renewable Energy Transmission Authority (RETA) to facilitate the development of the transmission project in New Mexico.
The project’s significance extends beyond its sheer size, heralding a new era in clean energy infrastructure and representing a pivotal step towards a more sustainable energy landscape in the United States.
