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European renewables co. expands into US with Houston-area solar panel manufacturing facility

A Turkish solar panel manufacturing company has opened its first US location just outside of Houston. Photo courtesy of Elin Energy

A European company opened a new 225,000-square-foot solar panel assembly facility in Waller County, and it has the capacity to manufacture 2,000 megawatts annually.

Turkish company Elin Energy opened it new space in Twinwood Business Park with the help from Houston real estate development company The Welcome Group and Houston construction company KDW. It's Elin Energy's first location in the United States.

The Waller facility aims to “catapult the company’s growth in the Western hemisphere and reinforce its commitment to sustainable energy production and innovation,” according to a news release. Elin’s panel designs boost the productivity of solar panels by requiring less space than traditional systems.

Photo courtesy of Elin Energy

“The facility [Elin has leased] was designed with generous bay spacing, clear height and upgraded power to accommodate and upgraded power to accommodate a variety of manufacturing needs,” Welcome Wilson Jr., president and CEO of the Welcome Group, says in the release. “Elin Energy’s state-of-the-art solar manufacturing equipment easily fit into the building footprint. The first equipment lines are installed, and the future equipment lines have been ordered.”

One of Europe's top producers of photovoltaic panels, Elin Energy's new facility features two solar panel manufacturing lines. The Waller County Economic Development Partnership and efforts from the state helped bring Elin to the area. Elin aims to bring around 100 jobs by the end of their first year of operations with an estimated 450 by the end of year seven.

KDW completed the build in under 6 months.

“The equipment delivery demanded an aggressive schedule which made it essential that all parties involved have a heightened level of coordination and cooperation,” KDW Construction Manager Bryan Harrison says in the release.

Photo courtesy of Elin Energy

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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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