shine bright

Houston renewables developer powers up projects in southern region of the US

Houston-based renewable project developer has opened four solar parks in the south recently. Photo via edpr.com

Houston-based renewable energy developer EDP Renewables is making big moves in the Southern United States with its latest solar park projects.

EDPR celebrated the inauguration of Pearl River Solar Park in Scott County, Mississippi, that has an installed capacity of 210 megawatt peak, which produces enough power to meet the energy needs of more than 27,000 average Mississippi homes.

The project consists of 400,000 monofacial and bifacial tracking photovoltaic panels that will contribute clean, cost-competitive power to the state’s electric grid. Pearl River will provide more than $50 million in payments to local governments throughout its operating life, benefiting schools, health care facilities, fire departments, and other county services, as well as create hundreds of jobs, according to EDPR.

"We are thrilled to finally see Pearl River begin operations,” Sandhya Ganapathy, CEO of EDPR North America, says in a news release. “Solar power is a win-win in Mississippi, as it accelerates the deployment of clean energy to the grid and contributes to the state’s decarbonization objectives. The project will immediately go to work to provide Mississippi with a readily available clean energy resource.”

A second project is currently under development for Ragsdale Solar Park in Canton, Mississippi. The project is expected to provide over $36 million to local governments and $15 million to landowners over the course of its lifespan once it becomes operational.

Ragsdale is expected to generate 100 MW of energy, which is equivalent to the consumption of 15,000 average Mississippi homes. According to the company, once operational, it will create over 100 construction jobs and will create three permanent jobs.

In May, EDPR opened its Crooked Lake Solar Park near Blytheville in Mississippi County, Arkansas, which is a 175-megawatt project. The company says it will generate enough energy to power the equivalent of 30,000 Arkansas homes each year.

In April, EDPR completed Misenheimer Solar Park in Stanly County, North Carolina. The solar project has an installed capacity of 74 megawatts, which is one of the largest in the state. Misenheimer Solar Park will generate enough energy annually to power the equivalent of more than 12,000 North Carolina homes while providing economic and environmental benefits, according to EDPR.

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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