Vesper Energy has successfully closed a $590 million financing deal for its Hornet Solar project in Texas, signaling a significant achievement in the renewable energy sector. The expansive project, spanning six square miles in Swisher County, is poised to stand out as one of the largest single-phase solar initiatives in the United States.
Robert Scheuermann, Chief Financial Officer of Vesper Energy, commented on the accomplishment, stating, “Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex. We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”
The Hornet Solar project, boasting a capacity of 600 MWac, is anticipated to provide power for approximately 160,000 homes on an annual basis. The financing arrangement, achieved through collaboration with financial institutions including MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking, underscores Vesper Energy's financial strength and growth entering 2024.
Highlighting the significance of the project, Scheuermann noted that it will not only be a major player in the renewable energy landscape but will also contribute to delivering clean energy to Texas communities. The Hornet Solar project aims to enhance grid stability and reduce price volatility in the Electric Reliability Council of Texas (ERCOT) region.
Integral to the financing structure is the use of Production Tax Credits (PTCs) under the Inflation Reduction Act. Advantage Capital's involvement is expected to facilitate the monetization of over $500 million in PTCs, providing essential financial support to the project.
With a capacity of 600MWac and 745MWdc, the Hornet Solar project plans to utilize bifacial solar modules on a single-axis tracking system. Construction, led by Blattner Energy, is already underway, with the project set to connect to Oncor Electric's transmission system in ERCOT. The development of Hornet Solar showcases Vesper Energy's commitment to advancing large-scale renewable energy projects and contributing to the sustainable energy landscape.