Vesper Energy, a developer, owner, and operator of large-scale renewable energy projects, has recently completed the financing for its Hornet Solar initiative. This significant asset aims to provide renewable energy solutions for various communities across Texas, enhance grid stability, and help stabilize prices within the Electric Reliability Council of Texas (ERCOT). The successful financing closure illustrates Vesper Energy’s financial robustness and its ongoing growth trajectory as it approaches 2024. This development marks another milestone in Vesper Energy’s commitment to advancing clean energy projects throughout the United States.
Insights from Vesper Energy Leadership
Robert Scheuermann, the Chief Financial Officer of Vesper Energy, commented on the complexity involved in securing project financing and establishing a long-term purchase agreement for the Production Tax Credits (PTCs) associated with such a large-scale initiative in West Texas. He expressed pride in collaborating with esteemed lenders and investors to support the Hornet Solar project, highlighting the value that Vesper Energy has created within this asset.
Project Overview and Capacity
The Hornet Solar project spans over six square miles in Swisher County, Texas, and is projected to produce 600 MWac, which is sufficient to power approximately 160,000 homes each year. This initiative is poised to be one of the most extensive single-phase solar installations in the United States. Vesper Energy has secured a substantial debt financing package amounting to $590 million for the Hornet Solar project, which includes a construction-to-term loan and a letter of credit facility. The financing arrangement involves a consortium of banks, including MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking as the lead arrangers, along with BayernLB and Associated Bank.
Statements from Financing Partners
Matt Curtin, Director at MUFG, expressed satisfaction in leading the debt financing for Vesper Energy’s largest solar project to date, emphasizing their confidence in the capabilities of the Vesper team to deliver ambitious clean energy initiatives. Nicolai Dillow, Managing Director at Nord/LB, highlighted the significance of financing such crucial energy transition projects, reiterating the bank’s commitment to supporting Vesper Energy in the evolving renewable energy landscape.
Utilization of PTC Transfer Funding
The debt financing strategy takes advantage of PTC transfer funding facilitated by provisions from the Inflation Reduction Act. With the assistance of Advantage Capital, over $500 million in PTCs will be monetized and utilized in conjunction with the loan facility. Michael Sponseller, Vice President at Advantage Capital, remarked on the company’s ability to devise innovative financing solutions for the dynamic renewable energy market, expressing enthusiasm for their collaboration with Vesper Energy on this project and future endeavors.
Technical Specifications and Construction
The Hornet Solar project, boasting a nameplate capacity of 600 MWac and 745 MWdc, will employ bifacial photovoltaic modules mounted on a single-axis tracking system. The project will connect to Oncor Electric’s transmission system within ERCOT. Blattner Energy has been contracted to oversee the construction of the Hornet Solar initiative. The energy produced will be sold to four off-take partners through individual Power Purchase Agreements (PPAs).
About Vesper Energy
Vesper Energy specializes in delivering innovative solutions to modern energy challenges. Based in the greater Dallas area, the company comprises a team of experts who have collectively managed over 10 GW of renewable energy projects globally. Currently, Vesper Energy’s project pipeline includes more than 55 renewable energy and energy storage initiatives, totaling a generating capacity of 17 GW—enough energy to supply over 2 million homes. The company is dedicated to working closely with communities, customers, and business partners to develop, own, and operate renewable energy projects aimed at enhancing the nation’s energy infrastructure.
About Advantage Capital
Advantage Capital collaborates with renewable energy developers to broaden community access to clean energy while boosting local economies by providing tax-advantaged financing solutions for impactful renewable energy projects across the United States. The firm has invested in over 100 non-residential projects, including commercial and industrial, community solar, and utility-scale ventures, alongside more than 10,000 residential rooftop systems nationwide. Since its inception in 1992, Advantage Capital has invested over $4.2 billion across various sectors, supporting more than 67,000 jobs.
About MUFG and MUFG Americas
Mitsubishi UFJ Financial Group, Inc. (MUFG) stands as one of the globe’s leading financial institutions. Established in Tokyo, MUFG boasts a history of over 360 years and operates approximately 2,000 locations in over 40 countries. With nearly 120,000 employees, MUFG provides a range of services, including commercial banking, trust banking, and asset management. The Group’s mission is to be the world’s most trusted financial institution, ensuring it meets the diverse financial needs of its customers while promoting sustainable growth.
