Ørsted has acquired an funding from J.P. Morgan for $680 million in tax fairness financing for a portfolio of photo voltaic and storage belongings in Texas and Arizona.
The venture portfolio consists of Eleven Mile Photo voltaic Middle, a 300 MW photo voltaic and 300 MW storage venture in Pinal County, Ariz., and Sparta Photo voltaic, a 250 MW photo voltaic venture in Mineral, Texas.
Eleven Mile will obtain a one-time funding tax credit score for its BESS, whereas the photo voltaic farm will generate manufacturing tax credit over a 10-year interval.
The tax fairness partnership with J.P. Morgan contains the choice for tax credit score transferability.
“Ørsted is an skilled developer and operator of renewable vitality initiatives within the U.S., together with offshore and onshore wind, photo voltaic and battery storage, all of which can generate tax credit invaluable to buyers,” says James Giamarino, CCO for the Americas at Ørsted.
“With this new market unlocked by the IRA, we’re excited to proceed our tax fairness partnership with J.P. Morgan and convey on new entities trying to advance the U.S. renewable vitality trade, help job progress and promote native financial improvement.”
The tax fairness funding will assist fund the completion of each initiatives, that are anticipated to start industrial operations this 12 months.
Latham & Watkins served as authorized counsel for Ørsted. Milbank served as authorized counsel for J.P. Morgan.
