Hannon Armstrong Sustainable Infrastructure Capital Inc., an investor in climate change solutions, has formed a partnership with a subsidiary of ENGIE S.A., an independent power producer (IPP) and energy efficiency services provider, that will own a 2.3 GW portfolio of wind and utility-scale solar assets.
The partnership combines Hannon Armstrong’s extensive experience in providing long-term investment for climate solutions with the development and operations experience of ENGIE, a global energy and services leader dedicated to accelerating the deployment of resilient energy solutions.
On commissioning, the 2.3 GW portfolio will comprise 1.8 GW of onshore wind and 0.5 GW of utility-scale solar photovoltaic (PV) projects (13 projects in total) located in five states. Hannon Armstrong will participate in the cash flows from the operations of this diversified portfolio of renewable energy projects, while ENGIE will retain a controlling share in the portfolio and continue to manage the assets.
“We have a common mission to accelerate the rapid adoption of climate change solutions, and we are pleased to partner with ENGIE once again with this new investment that adds significant scale and diversity to our portfolio,” says Jeffrey W. Eckel, chairman and CEO of Hannon Armstrong.
“Continuing to build a programmatic investment platform allows both firms to make the investment process more aerodynamic and cost-effective for ENGIE’s ultimate customers,” adds Eckel.
Under the agreement, Hannon Armstrong will take immediate ownership of 49% of 663 MW from four operating onshore wind projects. The remaining 1.6 GW of projects (five onshore wind and four utility-scale solar PV projects) currently under construction will be transferred into the partnership upon commissioning.
Assets are located in geographically diversified wind and solar resource regions and wholesale power markets, including Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), PJM Interconnection (PJM) and Southwest Power Pool (SPP).
