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Vesper Energy, a significant developer, owner, and operator of utility-scale renewable energy assets, has finalized financing for its Hornet Solar project. Set to provide renewable energy to communities throughout Texas, the project aims to enhance grid stability and address price volatility in ERCOT.
Chief Financial Officer of Vesper Energy, Robert Scheuermann, emphasized the complexity of securing project financing for the Hornet Solar project in West Texas, citing it as a significant achievement. Scheuermann highlighted the company’s pride in investing in the project alongside top-tier lenders and investors, underscoring the value generated by Vesper Energy in the asset.
Covering an expansive area of over six square miles in Swisher County, TX, the Hornet Solar project is projected to generate 600 MWac of power, enough to supply electricity to approximately 160,000 homes annually. Upon completion, it will stand as one of the largest single-phase solar projects in the United States.
Vesper Energy secured a substantial $590 million debt financing package for the Hornet Solar project, comprising a construction-to-term loan and letter of credit facility. The financing was led by notable financial institutions including MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking.
Matt Curtin, Director at MUFG, expressed confidence in Vesper Energy’s capabilities and praised the partnership, emphasizing MUFG’s commitment to supporting ambitious clean energy solutions.
Additionally, Nicolai Dillow, Managing Director / Head of Originations at Nord/LB, highlighted the bank’s dedication to facilitating energy transition projects like Hornet Solar, showcasing support for Vesper Energy in the renewable energy sector.
The financing leverages the Purchase Tax Credit (PTC) transfer funding enabled by provisions under the Inflation Reduction Act. Advantage Capital facilitated the purchase commitment, enabling over $500 million of PTCs to be monetized and leveraged by the loan facility.
Blattner Energy has been entrusted with the construction of the Hornet Solar project, which will utilize bifacial photovoltaic modules on a single-axis tracking system. The project is set to interconnect with Oncor Electric’s transmission system in ERCOT.
The power generated by the Hornet Solar project is contracted to four off-take partners through individual Power Purchase Agreements. |
