InfraRed Capital Partners (“InfraRed”) is pleased to announce the acquisition of a 202-megawatt operational onshore wind farm in south Texas, US, from Duke Energy Corporation. This asset has been acquired for an InfraRed managed strategy focused on the North American energy transition and will join a growing portfolio of renewable assets, including onshore wind and solar.
Since commencing operations in 2019, the wind farm has had an excellent operational track record delivering availability above 97% in its steady state. The facility uses industry-leading Vestas turbines and there is a long-term operation and maintenance agreement with the manufacturer, which will provide continued reliable and sustainable performance.
The project will sell power on a merchant basis in the wholesale market, benefitting from strong demand growth in Texas. Revenues will be further enhanced by the production of Renewable Energy Credits as well as the project’s eligibility for Production Tax Credits under the Inflation Reduction Act, which will continue to accrue for the next 5.5 years.
This investment was undertaken with all cash equity, without leverage or tax equity financing. This structure provides InfraRed with significant flexibility in both operational and financial decision-making.
Jack Paris, CEO, InfraRed Capital Partners, commented:
“The US energy transition continues to present attractive investment opportunities which closely align with our strategies, especially in the renewables space. This is another excellent addition to our North American energy transition portfolio, particularly as we expect it will be accretive in terms of returns and yield. We have significant flexibility in how we choose to operate the assets, which will allow us to drive further value. We will continue to seek opportunities in this growing market.”
ENDS
About InfraRed Capital Partners
InfraRed Capital Partners is an international infrastructure asset manager, with more than 160 professionals operating worldwide from offices in London, Madrid, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and steward of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$13bn+ of equity capital [1] for investors around the globe, in listed and private funds across both core and value-add strategies.
A long-term sustainability-led mindset is integral to how InfraRed operates as it aims to achieve lasting, positive impacts and deliver on its vision of Creating Better Futures. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has achieved the highest possible PRI rating [2] for its infrastructure business for eight consecutive assessments, having secured a 5-star rating for the 2023 period [3]. It is also a member of the Net Zero Asset Manager’s Initiative and is a TCFD supporter.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BGO, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager.
[1] $13bn+ equity under management (USD) – Uses 5-year average FX as at 31st December 2023 at GBP/USD of 1.2881, EUR/USD of 1.1226, EUM is USD 13.433m.
[2] Principles for Responsible Investment (“PRI”) ratings are based on following a set of Principles, including incorporating ESG issues into investment analysis, decision-making processes and ownership policies. More information is available at https://www.unpri.org/about-the-pri
[3] In the 2023 Principles for Responsible Investment (“PRI”) assessment, InfraRed achieved a 5 star rating for the Policy Governance and Strategy and Infrastructure and a 4 star rating for the newly created Confidence Building Measures. Please find InfraRed’s report available for download on our website here: https://www.ircp.com/sustainability/
