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Texas company secures $200M for solar project near Houston

The project will take over more than 1,000 acres of former farmland about an hour outside of Houston. Photo via Getty Images

An Austin-based company has scored $200 million in financing for a solar energy project it’s building in Liberty County.

Recurrent Energy’s 134-megawatt Liberty Solar project, about 50 miles northeast of Houston, is scheduled to start operating in 2024. The facility will occupy more than 1,000 acres of former farmland about six miles south of Dayton.

Last year, Recurrent Energy indicated the project represented an investment of $155 million, according to paperwork filed with the Texas Comptroller of Public Accounts.

The company lined up $120 million in financing through Rabobank, Nord LB, and U.S. Bank in the form of construction debt, a letter-of-credit facility, and a term facility. In addition, U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is providing $80 million in tax equity.

“Liberty Solar is the second project financing that Recurrent Energy has closed in North America this summer, indicating execution on our strategy to retain greater ownership of projects in select markets,” Ismael Guerrero, CEO of Recurrent Energy, says in a news release.

Recurrent Energy announced in May 2023 that it had signed purchase agreements for all of the Liberty County site’s solar power capacity. The Austin company, a subsidiary of Canadian Solar, says Liberty Solar will generate enough energy to power an estimated 15,000 homes per year.

The five companies that agreed to buy the solar power are:

  • San Francisco-based software company Autodesk
  • Cambridge, Massachusetts-based biotech company Biogen
  • Semiconductor manufacturer EMD Electronics, the North American electronics business of Germany-based pharmaceutical giant Merck
  • Boston-based home goods retailer Wayfair
  • An unidentified healthcare company

The Recurrent Energy project will expand solar capacity in the Midcontinent Independent System Operator (MISO) region, which includes most of Liberty County. The nonprofit organization manages electricity in 15 states and Canada’s Manitoba province.

The solar project is outside the territory of the Energy Reliability Council of Texas (ERCOT), which oversees the power grid for about 90 percent of Texas.

Recurrent Energy already operates solar projects in California and Mississippi as well as Argentina, Australia, Brazil, Canada, Italy, Japan, Mexico, and the United Kingdom.

The Liberty Solar project isn’t the only solar facility being developed in Liberty County.

Spanish renewable energy company X-ELIO said in February 2023 that it had begun construction on a 60-megawatt battery energy storage system in Liberty County that it’s pairing with a 72-megawatt solar energy facility. The two projects are being built on the same site.

The solar energy project, set to start operating in early 2024, will support ERCOT’s energy needs in the Houston area. X-ELIO says the project represents an investment of more than $130 million.

Power generated by the facility will be sold to BASF, a chemical conglomerate based in Florham Park, New Jersey. Any surplus energy will be stored by the battery system. BASF maintains its regional petrochemical headquarters in Houston and a chemical manufacturing plant in Pasadena.

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A View From HETI

SLB ranks No. 105 on an inaugural report of the most future-ready businesses. Photo courtesy of SLB

More than 20 Houston-area companies reign among the most future-ready in the U.S., based on a first-time ranking of the best S&P 500 companies for the future. The majority of them are part of Houston's booming energy sector.

Published by The Wall Street Journal, the ranking was created by Bendable Labs for the WSJ Leadership Institute. It evaluates how S&P 500 companies stack up in six areas: AI readiness, innovation, talent readiness, financial fitness, resilience and agility. To be ranked, a company had to be part of the S&P 500 as of Dec. 31.

Here are the Houston-area companies in the energy sector included in the ranking of the best companies for the future:

  • No. 105 SLB
  • No. 120 Baker Hughes
  • No. 125 ConocoPhillips
  • No. 158 NRG Energy
  • No. 176 Targa Resources
  • No. 185 Chevron
  • No. 195 Halliburton
  • No. 223 Coterra Energy
  • No. 235 Exxon Mobil
  • No. 250 Kinder Morgan
  • No. 257 Quanta Services
  • No. 276 CenterPoint Energy
  • No. 313 Occidental Petroleum
  • No. 333 EOG Resources
  • No. 365 LyondellBasell Industries
  • No. 408 Phillips 66
  • No. 500 APA
Here are the remaining Houston-headquartered businesses that made the list:
  • No. 72 Hewlett Packard Enterprise
  • No. 229 Waste Management
  • No. 285 Sysco
  • No. 318 Camden Property Trust
  • No. 373 Comfort Systems USA
  • No. 401 Crown Castle

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A version of this story first appeared on InnovationMap.com.

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