Multinational independent power producer Building Energy SPA has closed a partnership and capital contribution agreement between its U.S. subsidiary, Building Energy Wind Iowa, and Capital One Bank for the construction and operation of a 30 MW Iowa wind project.
The project, which requires a total equity investment of approximately $56 million, will be supported by a long-term power purchase agreement. The distributed generation project is being developed by Building Energy and Optimum Renewables.
Capital One Bank is committing a tax equity contribution of approximately $33 million to the project portfolio and will release funds at the expected commercial operations date – the fourth quarter of the year – subject to the fulfillment of requirements outlined in the capital contribution agreement. Building Energy will invest in the remaining $23 million.
The project, located north of Des Moines in Story, Boone, Hardin and Poweshiek counties, comprises 10 turbines, each with a rotor diameter of 125 meters and a 3 MW generator mounted on an 87.5-meter steel tower.
George Revock, managing director and head of alternative energy and project finance at Capital One Bank, notes, “This investment will help Building Energy provide affordable and sustainable energy to local communities across Iowa and also will advance Capital One’s sustainable energy initiative.”