Apollo Funds has committed to invest through convertible debt and equity up to $265 million to acquire an equity stake in U.S. Wind and fund development and construction costs associated with a major offshore wind energy project off the coast of Maryland.
U.S. Wind controls the Maryland Wind Energy Area under a Bureau of Ocean Energy Management (BOEM) lease of approximately 80,000 acres located 10 to 30 miles off the state’s coast, an area that is sufficient to install an estimated 1.3 GW of renewable power generation. The first phase of the project will have a capacity of 270 MW.
U.S. Wind plans to sell electricity and offshore wind renewable energy credits under the Maryland Offshore Wind Energy Act of 2013, and the project is poised to be a key contributor of renewable energy required under Maryland’s Renewable Portfolio Standard. Anticipated to come online in early 2024, the project has a 25+ year useful life and is expected to create thousands of jobs.
“We believe our strategic partnership with Apollo will create significant value for U.S. Wind and Maryland in advancing the development of our offshore wind projects,” says Riccardo Toto, president of U.S. Wind.
“Apollo is a creative and dynamic partner, with global expertise. Together we believe we can make a positive impact on the energy transition in the U.S.,” he adds.
The U.S. Wind investment extends Apollo’s 30-year track record in which Apollo-managed funds have invested more than $20 billion in infrastructure-related opportunities across its platform. Apollo’s infrastructure business, which is currently investing out of its second dedicated infrastructure fund, focuses primarily on opportunities in power and renewables, communications, midstream energy and transportation.
Photo: U.S. Wind Inc.’s landing page