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Sustainable infrastructure investment and operating platform Generate Capital has announced strategic growth capital and asset financing of $500 million to renewable energy project developer Pine Gate Renewables to expand the latter’s utility-scale solar and energy storage projects.
The credit facility comprises a $200 million equity investment and a $300 million commitment to a long-term asset partnership for solar project financing. Generate Capital would join Pine Gate’s Board of Directors through the collaboration.
Pine Gate said it would direct the investment of $300 million into the construction and development of clean energy projects besides meeting its other general working capital purposes.
Foley & Lardner was the transaction’s legal adviser for Generate Capital, while DNV GL was the technical adviser. Lazard served as financial adviser for Pine Gate in the deal, and Gibson, Dunn & Crutcher was the legal adviser.
Generate Capital’s CEO Scott Jacobs said, “Pine Gate team has a strong track record of execution and growth and an innovative operating model that enables them to move fast to build projects across important solar and storage markets. We are excited to partner with this best-in-class team and support Pine Gate’s continued expansion and market leadership.”
Pine Gate owns and operates over 1 GW of renewable energy projects, with over 20 GW of active projects under development across the country. The company has raised over $1 billion in corporate and project capital financing in the past six months.
“Generate Capital is a collaborative, experienced partner and shares our long-term vision of driving the energy transition and improving energy security by providing solar energy and battery storage to local communities across the country. We are well-positioned as we continue to expand our national presence,” said Ben Catt, Pine Gate’s CEO.
Earlier this year, Pine Gate secured a $500 million credit facility from Fundamental Renewables to fund the development and construction of its utility-scale solar and storage projects in the U.S.
The solar developer with an alternative investment manager Irradiant Partners also secured financing for 56 MW of solar projects under development in Michigan. The funds are being used to develop two solar projects having a 20-year power purchase agreement with Consumers Energy, the principal subsidiary of CMS Energy.