Longroad's fourth utility-scale renewable energy project in Maricopa County has closed financing and begun construction. Represents cumulative $2 billion invested in Maricopa Country by Longroad Energy
BOSTON, Dec. 4, 2024 /PRNewswire/ -- Longroad Energy, a U.S. based renewable energy developer, owner and operator, announced today the financial close of Sun Pond, its 111 MWdc solar and 85 MWac / 340 MWh storage project in Maricopa County, Arizona. Sun Pond is part of the Longroad Sun Streams Complex. The project has commenced construction and commercial operations is expected by mid-2026.
The output of the Sun Pond project will be purchased by the City of San Jose, California, and Ava Community Energy via long-term Power Purchase Agreements (PPAs). The project will generate enough electricity to power approximately 35,000 average American homes.
"With the financial close and commencement of construction of Sun Pond, Longroad has achieved more than 970 MWdc of financed and under-construction solar projects in Maricopa County representing $2 billion in investment," said Paul Gaynor, CEO of Longroad Energy. "The project exemplifies our commitment to delivering meaningful benefits to energy buyers and communities. We are providing customers with clean, affordable renewable energy to support grid reliability, while contributing to the local economy where our projects our sited, including $30 million in revenue for public schools and local jurisdictions through lease and tax payments, as well as supporting family-sustaining jobs."
Sun Pond represents the continuation of a longstanding partnership between Arizona-headquartered solar manufacturer First Solar, Inc. and Longroad. Sun Pond is the fifth Arizona project using First Solar's uniquely American photovoltaic solar technology that Longroad has financed in the past four years.
"We are thrilled that our relationship with Longroad continues to grow in strength and that our modules will not simply power Sun Pond, but the communities it will serve," said Georges Antoun, Chief Commercial Officer, First Solar. "As America's solar company, we are proud of our technology's role in delivering cost-competitive electricity to support our nation's economic growth, and energy security."
Debt financing was led by U.S. Bancorp Impact Finance and included Commerzbank AG and CIBC. U.S. Bancorp Impact Finance acted as Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Depositary. CIBC acted as Joint Lead Arranger and Green Loan Coordinator. U.S. Bancorp Impact Finance is also the project's tax equity investor.
"U.S. Bancorp Impact Finance is dedicated to creating a sustainable future and we are thrilled to finance Sun Pond and continue expanding access to renewable energy in Arizona," said U.S. Bancorp Impact Finance Managing Director of Environmental Finance Darren Van't Hof. "Our team's ability to offer tax equity financing solutions in addition to leading the project finance debt is a testament to U.S. Bank's ability to provide custom financing solutions for our clients like Longroad. Sun Pond is one of several Longroad projects we've financed and each one is a great example of how our team collaborated internally to bring multiple assets of U.S. Bank together to meet Longroad's needs."
McCarthy Building Companies (McCarthy) is the engineering, procurement and construction (EPC) contractor on Sun Pond. Sun Pond is expected to employ over 200 people during the construction process. McCarthy is utilizing registered apprentices and will be paying prevailing wage to all workers on the project, in accordance with the Inflation Reduction Act (IRA).
"Building solar projects allows us to further develop Arizona's solar workforce while also investing in our nation's diverse energy infrastructure," said Chris Fletcher, McCarthy Vice President of Operations. "We are thrilled to be part of another major solar energy and storage project with Longroad Energy in Arizona and for the economic opportunities it provides our community."
The Sun Pond 85 MWac / 340 MWh battery energy storage system (BESS) will be provided by U.S.-based energy storage platform provider Fluence. The BESS will include U.S.-made inverters from EPC power. BESS cells from AESC will be integrated into the Fluence Gridstack system. Longroad, in conjunction with Fluence and NovaSource Power Services, will provide long-term operations and maintenance services for the BESS.
"Employing a proven and reliable Fluence energy storage platform, including an advanced asset management analytics tool, Longroad is investing in leading technologies at its 340 MWh Sun Pond project," said John Zahurancik, Fluence President, Americas. "This new system will provide clean, cost-effective power and firm, flexible capacity to a rapidly modernizing grid. With more than 7 GWh of battery storage systems operating in the U.S. alone, our Gridstack product line is one of the most widely used systems for communities across the country."
Nextracker is supplying trackers for the project and Sungrow is supplying the solar inverters. Comprehensive operations and maintenance services for the project will be provided by NovaSource Power Services and Longroad's affiliate Longroad Energy Services.
Longroad Sun Streams Complex
Sun Pond is part of the Longroad Sun Streams Complex which is currently comprised of three additional projects. With Sun Pond, the Complex will total 973 MWdc of solar and 600 MWac / 2,400 MWh storage.
Environment and Community
Sun Pond represents over 145,000 metric tons of avoided CO2 emissions annually. Over the project's useful life, Sun Pond will contribute more than $30 million in revenue for Arizona schools and communities through its long-term lease with the Arizona State Land Department and tax remittances. Longroad extends its thanks to staff and officials from Maricopa County, and the Arizona State Land Department for their continued collaboration during development and construction of the project.
About Longroad Energy Holdings, LLC
Founded in 2016, Longroad Energy Holdings LLC is focused on renewable energy project development, operating assets, and services. Longroad has developed or acquired 5.6 GW of renewable energy projects across the United States and has raised $15.2 billion of equity, debt, and tax equity to support completion of its portfolio. Today, Longroad owns 3.7 GW of wind, solar, and storage projects and operates and manages a total of 5.7 GW on behalf of Longroad and third parties. Longroad is owned by the NZ Superannuation Fund, Infratil Limited, MEAG MUNICH ERGO Asset Management, and Longroad Energy Partners, LLC.
SOURCE Longroad Energy Management, LLC
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