GREEN & CLEAN POWER SECURES FINANCING FOR SOLAR AND ENERGY STORAGE PROJECT IN ARKANSAS

New company features a behind-the-meter 105MW solar installation and a 160mwh battery energy storage system to initially power neighboring Hybar, a scrap metal recycling steel rebar mill

OSCEOLA, Ark., Dec. 3, 2024 /PRNewswire/ -- Newly formed Green & Clean Power LLC (GCP) announced today that it successfully raised approximately $300 million of debt and equity financing to build and operate a solar energy generation and battery storage facility on nearly 500 acres of property in Osceola, Arkansas. KfW IPEX-Bank provided approximately $165 million in construction debt financing with Aurora Energy Research serving as its Market Advisor. The Arkansas Teacher Retirement System (ATRS) provided an additional $100 million in a takeout financing commitment. GCP's facility is already under construction with completion expected by fall of 2025.

"The sustainable production and recycling of steel plays a key role in global decarbonization," stated Dr. Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank. "After providing financing for the Hybar rebar mill in 2023, we're delighted to now support the clean power supply for this flagship project. With this financing, we again underline our commitment to projects that contribute to the worldwide transformation towards a carbon-neutral future."

"Sustainable steelmaking continues to make significant impacts on the state of Arkansas," said Mark White, Executive Director of The Arkansas Teacher Retirement System. "We are pleased to support this newest entity knowing it benefits our state, it benefits our environment, and, most of all, it will benefit our members."

GCP will initially supply behind-the-meter renewable electrical energy to its sister company, Hybar LLC, an adjacent scrap metal recycling steel rebar mill currently under construction that, once commencing operations in the summer of 2025, will produce a full complement of high- yielding rebar primarily to be used in large infrastructure projects. Equity investors in GCP and Hybar include a world class roster of climate-minded investors including TPG (via its dedicated climate investing strategy TPG Rise Climate), Quanta Services, Inc., and Global Principal Partners, the investment partnership owned by Hybar's senior management team. The solar and battery storage components of the project are provided under a comprehensive, lump-sum engineer, procure and construct (EPC) agreement with DEPCOM Power, Inc., a leading EPC company in the solar and battery project space.

GCP is expected to supply Hybar with approximately 40% of Hybar's total annual power consumption when both entities are brought online in 2025. Provided the right conditions, Hybar and interested customers will be able to know with certainty that the electricity being used to run the mill is being generated from 100% renewable sources, allowing Hybar to serve customers with ambitious net zero targets. The power supplied to Hybar by GCP will augment Hybar's existing power supply agreement with Entergy Arkansas for the supply of grid power. The combination of 100% recycled raw materials (scrap metal), coupled with its access to high-volume renewable power will position Hybar as the steel producer with one of the lowest, if not the lowest, scope one and scope two emissions in the world.

"Unlike other industrial businesses which seek to invest in renewable power generation projects hundreds of miles away from their closest operation as a means of carbon offsetting, GCP's production of solar and renewable-stored energy will be directly connected to Hybar. To our knowledge, this will be the first renewable power installation in the industry to provide a steelmaking facility with solar-generated electricity on a behind-the-meter basis," said Ari Levy, Partner at Global Principal Partners and CFO of both GCP and Hybar. "Access to renewable energy was a major component of Hybar's mission and we appreciate the commitment of KfW IPEX- Bank, ATRS and the investment group that supported Hybar as we launch Green & Clean Power."

GCP will also initiate its application for interconnection with the Midcontinent Independent System Operator (MISO) grid system. It is anticipated that obtaining this interconnection will take three years and once connected to the grid, GCP will be able to provide its solar-generated and battery-stored power for sale to third party customers.

This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This press release may contain forward-looking statements, including, but not limited to, the expansion project and financing plans, including the offering of the bonds and equity financing. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward- looking statements speak only as of the date hereof. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes, except as required by law.

SOURCE Green & Clean Power