Italian renewable energy group ERG announced on Thursday its foray into the U.S. market through the acquisition of two wind and solar assets from U.S. competitor Apex Clean Energy. The deal entails the establishment of a U.S. holding company, jointly owned by ERG and Apex, overseeing a wind farm and solar plant boasting a combined installed capacity of 317 megawatts. ERG is set to invest $270 million for a 75% stake in the holding company, while Apex will retain a 25% ownership share.
CEO Paolo Merli outlined ERG's plans to unveil its U.S. strategy and growth targets to the financial community in the first half of the coming year as part of the 2024-2028 industrial plan.
Operationally, Apex will continue managing the two assets, located in Iowa and Illinois, with the deal expected to conclude in the first half of next year, contingent upon regulatory clearance from U.S. and European authorities.
ERG anticipates that the Iowa and Illinois plants will generate approximately 1 terawatt hour (TWh) of energy. The assets, benefiting from tax equity investments under U.S. energy incentive schemes, are poised to yield steady revenues through long-term power purchase agreements, and they will be debt-free at the time of closing.
The collaboration between ERG and Apex extends beyond the current assets, encompassing joint efforts on new solar and onshore wind projects totaling around 1 gigawatt in the United States. Rothschild & Co served as the financial advisor for the transaction.