#USA #Arkansas #Cordelio Power #Crossover Wind #Cross County

Cordelio Power Launches Arkansas's First Commercial Wind Project

Cordelio Power has officially launched the Crossover Wind project, achieving commercial operations at a capacity of 135 MW in Cross County, Arkansas. This landmark project is notable as it marks Arkansas's first utility-scale wind installation. Cordelio's Chief Development Officer, Nick Karambelas, expressed pride in this new venture, emphasizing its potential for economic growth and reliable energy supply for the state.

Generating renewable energy, the Crossover Wind project will significantly contribute to local communities, with annual payments of approximately $950,000 to Cross County and a sum exceeding $50 million distributed to local landowners over the project's lifespan. Furthermore, all generated power will be sold to Microsoft through a long-term, 20-year contract, aligning with the growing demand for sustainable energy solutions.

In his statement, Karambelas noted, “Crossover Wind stands as an important milestone, enabling us to enhance our projects in Arkansas. We are grateful for the support from Cross County officials, landowners, and the wider community who have been crucial to the realization of this project.”

Construction and Development

The project was successfully constructed by M.A. Mortenson Company under a comprehensive Engineering, Procurement, and Construction (EPC) contract. The wind turbines utilized in the project are Vestas V163-4.5 MW models, which are manufactured in the U.S. Vestas will also provide ongoing operations and maintenance support under a long-term service agreement, ensuring the project's efficiency and sustainability.

Paul Rapp, the Chief Operating Officer of Cordelio Power, expressed satisfaction with the collaboration on this project, noting, “Completing our third wind project in the U.S. with Vestas presents us with considerable opportunities as we expand our portfolio.”

Financial Insights

In terms of financing, Cordelio Power facilitated a smooth funding process for the Crossover initiative, with assistance from prominent lenders such as SMBC, Credit Agricole Corporate and Investment Bank, National Bank of Canada, Royal Bank of Canada, and BMO, who collectively provided a $375 million construction loan facility alongside a $173 million term loan facility.

Key to this milestone was the partnership with U.S. Bank, which contributed with a $263 million tax equity investment, further underpinning the project's financial foundation. Jon Peeples, managing director of environmental finance for U.S. Bancorp Impact Finance, highlighted the importance of custom financing solutions that support renewable energy expansion and local job creation.

Project Background and Future Directions

Cordelio Power acquired the Crossover project in late 2023 from Steelhead Americas, Vestas' North American development arm, which had initiated the site's development back in 2020. Legal matters in these transactions were advised by Latham & Watkins.

As an independent power producer, Cordelio Power is dedicated to developing, building, and operating wind, solar, and energy storage facilities. The company manages a robust portfolio of 1,860 MW of operational assets across the U.S. and Canada, with an ambitious development pipeline exceeding 18,000 MW of additional projects.

Cordelio Power is wholly owned by the Canada Pension Plan Investment Board, reflecting its long-term commitment to sustainable energy initiatives. As Cordelio continues to advance its portfolio, the company remains focused on collaborating with stakeholders to ensure environmentally responsible and efficient energy generation.

Conclusion

The Crossover Wind project not only signifies a substantial step forward for renewable energy in Arkansas but also reflects Cordelio Power's steadfast commitment to fostering economic growth and sustainability within the communities they serve. This project heralds a new era of clean energy generation in the state, paving the way for future developments in the renewable energy sector.