Boston-based developer First Wind has obtained $206 million in financing for its first renewable energy project in Texas. Now that financing is closed on Route 66 Wind, located in Armstrong and Carson counties, First Wind says it will continue engineering and construction activities on the 150 MW project.
First Wind subsidiary Route 66 Wind Power LLC closed on the financing agreement, with Morgan Stanley and Santander acting as joint lead arrangers and Morgan Stanley serving as the administrative agent. The two have also committed tax equity into the deal. Morgan Stanley Commodities is providing a long-term Electric Reliability Council of Texas (ERCOT) power hedge, and BayernLB is providing term debt financing for the project.
Construction work began on the project in late 2013, thus allowing it to qualify for the federal wind energy production tax credit, First Wind notes. M.A. Mortenson is acting as the prime contractor, and Vestas will supply 75 V110 turbines with a capacity of 2 MW each to the project. The developer says it expects Route 66 Wind to deliver power to ERCOT power markets through the recently completed Competitive Renewable Energy Zone transmission system.
First Wind owns and operates wind projects in Maine, Vermont, New York, Utah, Washington and Hawaii.