Abengoa has entered into an agreement to collaborate with Capital Riesgo Global – a subsidiary of Banco Santander – which will become a financial partner in the development of Solana, a 280 MW concentrating solar power (CSP) plant.
The solar farm is currently being built by Abengoa in Arizona. Capital Riesgo Global will invest $125 million in exchange for an equity stake in the project. The total investment for Solana is around $2 billion.
Abengoa obtained a federal loan guarantee for approximately $1.45 billion in December 2010 from the U.S. Department of Energy to finance the project. This investment, which has been approved by the U.S. Department of Energy and the Federal Energy Regulatory Commission, will reduce Abengoa's own capital requirement contribution and is fully compatible with the potential entry of a tax equity investor in the project, the company adds.