Longroad Energy, a U.S.-based renewable energy developer, owner and operator, has announced the financial close and start of construction of the 243 MW El Campo wind farm in Knox County, Texas.
The two Danish pension funds PKA and PenSam, represented by their investment manager, AIP, also became long-term investors alongside Longroad.
The total cost of the north Texas wind farm is approximately $335 million. It is expected to achieve commercial operation by July 2020.
The project will contribute nearly $20 million in property taxes to the Benjamin Independent School District, Knox County, the Knox County Hospital District and other local taxing authorities. It is also expected to provide employment for approximately 200 people during construction. Eight full-time staff will manage the day-to-day operations of the facility.
The project has two corporate power purchase agreements: one with DaVita for 83 MW and one with Crown for 111 MW.
Vestas will supply 67 wind turbines ranging in size from 2.0 MW to 4.2 MW each. The project will be built by Mortenson under an engineering, procurement and construction agreement.
On the financing front, BHE Renewables is the sole tax equity investor. The lending group is led by KeyBank NA and includes HSBC Bank, CIBC and Zions Bancorporation NA.
Finally, Longroad Energy affiliate Longroad Energy Services, will provide construction management, asset management, operations and maintenance, and remote monitoring services over a 20-year term.
“Longroad is pleased to bring this deal through this crucial step and to partner with PKA and PenSam through AIP,” states Paul Gaynor, CEO of Longroad. “We are proud of our track record in developing, financing, constructing, owning and operating well-structured renewable assets in the U.S.”