InfraRed Capital Partners (“InfraRed”) is pleased to announce that it has successfully acquired 49% of the equity in a portfolio of two wind projects (Iron Star and Priddy) and one solar project (Hawtree) totaling 665MWs (together, the “Projects”) from ENGIE North America (“ENGIE”).
Under the terms of the agreement, ENGIE will retain the remaining 51% equity in the Projects and, given significant expertise in managing more than 4GW of renewable projects in North America, will operate the portfolio. The two wind projects are located in Ford County, Kansas and Mills County, Texas respectively, while Hawtree is in Warren County, North Carolina. The Projects were constructed during 2021 and early 2022 and produce enough renewable power to meet the needs of around 200,000 average American homes.
The investment comes as these Projects move into commercial operations, reducing construction and financing risk. Iron Star comprises 62 wind turbines capable of producing 4.8MW each and the Priddy project has 63 turbines of the same size in operation. The installed capacity of Hawtree is equal to 65MWac.
The Projects have long-term Power Purchase Agreements in place with well-known, investment-grade strategic counterparties, resulting in a highly resilient contracted revenue stream. These assets form a well-diversified portfolio spread across different states and wholesale electricity markets, which are strategically important target markets within the U.S. for InfraRed.
With the energy transition to a net-zero future underway, new economic opportunities are emerging as communities across the U.S. become key participants in the generation of renewable energy. InfraRed is forging a long-term partnership with ENGIE. The three projects will become an integral part of the Kansas, Texas and North Carolina communities where they are located.
Jack Paris, Head of Americas at InfraRed Capital Partners said:
“InfraRed is delighted to partner with ENGIE to build a long-term, strategic partnership in the U.S. renewables market, where we see substantial opportunity. This investment in Iron Star, Priddy and Hawtree will deliver value for all stakeholders and is aligned with our investment focus on infrastructure assets which provide essential services and create a positive impact for future generations. Clean energy cuts across this and we look forward to delivering for the communities of Ford, Mills and Warren counties.
“This investment in a sizable portfolio, which is well diversified across both locations and technologies, expands our renewable activities in North America and supports our significant growth ambitions in the clean energy sector.”
Dave Carroll, Chief Renewables Officer, ENGIE North America said:
“The combination of ENGIE’s deep operating experience of renewable projects coupled with the expertise of InfraRed creates a tremendous partnership for owning and operating these projects that bring to life the energy transition in North America. It truly supports the journey towards net-zero and with more than 4,500 MW of renewables in operation or construction, building strong collaborations such as these is a cornerstone of ENGIE’s approach.”
About InfraRed Capital Partners:
InfraRed is an international investment manager, investing in infrastructure which contribute positively to society and support the transition to a net zero future. Over the past 30 years, InfraRed has established itself as a highly successful developer and custodian of core infrastructure, renewable energy and real estate assets that play a vital role in supporting sustainable communities. It operates worldwide from offices in London, New York, Sydney and Seoul. With around 170 professionals, it manages in excess of US$12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe.
At InfraRed, a long-term, sustainability-led mindset is essential to delivering lasting success, and this mindset directs its assessment and management of the Environmental, Social and Governance (“ESG”) aspects of its business. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has been awarded triple A+ score in the 2020 review (relating to the 2019 assessment period). It is also a member of the Net Zero Asset Manager’s Initiative, a certified CarbonNeutral® company1 and is a TCFD supporter.
InfraRed is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. Over the past 30 years, InfraRed has established itself as a highly successful developer and custodian of core infrastructure, renewable energy and real estate assets that play a vital role in supporting sustainable communities.
1. In accordance with The CarbonNeutral Protocol. Further information is available at https://carbonneutral.com/ the-carbonneutral-protocol
