Primergy Solar LLC, a powerhouse in the solar and storage sector, recently announced the securing of a whopping $588 million in debt financing for the development of the Ash Creek Solar project in Hill County, Texas. Boosting the project’s credibility, the company has also inked a long-term power purchase agreement (PPA) with tech giant Microsoft.
Powering Up with Microsoft’s PPA
The unfolding of the Ash Creek Solar project showcases Primergy’s adeptness in the renewable energy realm, from initiating to operating substantial-scale projects. This venture is a strategic piece of Primergy’s broader mission to support significant corporate clients and diversify their project locations. Emphasizing the importance of partnerships in clean energy finance, Primergy’s CEO, Ty Daul, commended the alliance with Microsoft, which supports Microsoft’s sustainability objectives.
Strategic Site Selection
With a prime location adjacent to existing fossil fuel plants and areas of high energy demand, Ash Creek Solar promises a significant clean energy output. Upon completion, it’s projected to produce enough emissions-free electricity to support about 90,000 households annually.
Financial Framework
The financial structure of the Ash Creek Solar venture comprises a construction loan and other credit-related arrangements facilitated by a consortium of banks, led by MUFG Bank, Ltd., and SMBC. These arrangements aim to support the progression of the project to fruition. In charge of counseling on legal matters, Primergy enlisted the expertise of Latham & Watkins LLP and Skadden Arps Slate Meagher & Flom.
Banking Partners & Community Impact
MUFG’s Managing Director for Project Finance Americas, Louise Pesce, expressed delight in continuing their partnership with Primergy, highlighting a commitment to socially impactful investments. Similarly, Paul Jun from SMBC endorsed the effort, underscoring SMBC’s dedication to promoting clean energy infrastructure.
The project’s influence extends beyond energy production, with local leaders, schools, and landowners collaborating to ensure it brings lasting benefits to the community. Once operational, Ash Creek Solar is set to inject approximately $100 million in tax contributions to Hill County and significantly bolster the local school districts’ tax revenues.
Jobs Creation and Community Relations
Pre-construction activities for the Ash Creek Solar project are underway, signaling the creation of around 350 full-time construction jobs. Post-construction, the facility will be managed by a permanent team of six to maintain its safety and reliability. SOLV Energy, chosen as the construction partner for their expertise in the field, is helmed by CEO George Hershman, who espoused the lasting positive impact large-scale solar projects have on communities, particularly in generating revenues for local services and schooling.
The project’s inception began with Orion Power Generation, LLC, a collaboration between Orion Renewable Energy Group LLC and Eolian. Primergy’s acquisition of the project in 2021 marked a significant milestone in its development trajectory.
