Successful Financing Closure for 347 MWdc Solar Project Near Houston by OCI Energy and Arava Power

OCI Energy and Arava Power Finalize Financing for Solar Project

OCI Energy LLC and Arava Power, in collaboration with ING Capital, have announced the closure of construction financing for their ambitious solar initiative, known as Project SunRoper. This project, located in Wharton County, Texas, boasts a capacity of 347 MWdc and represents a significant step forward in the transition towards renewable energy sources. This milestone, achieved through a strategic partnership among the three companies, underscores the increasing investment in solar energy infrastructure within the United States.

The financing for Project SunRoper, totaling approximately $394 million, is structured through a combination of loans and credits that support not just the construction phase but also the long-term operational viability of the project. ING Capital has taken on a multifaceted role in this transaction, serving as the sole coordinating lead arranger and green loan coordinator. Their involvement ensures that the financing aligns with sustainable practices and contributes positively to the energy landscape.

Notably, Project SunRoper is supported by a 20-year power purchase agreement (PPA) established with a Fortune 100 company, offering a solid foundation for its revenue stream and long-term operational stability. This partnership reflects the strong market demand for clean energy solutions and demonstrates the commitment of both OCI Energy and Arava Power to harness solar power effectively.

BHI and Bank of Hapoalim contributed to the financial backing by offering additional financing support and letters of credit, further solidifying the financial structure necessary for the project's success. Legal guidance was provided by Foley Lardner LLP for the joint venture, while ING was represented by Skadden, Arps, Slate, Meagher & Flom LLP. The engineering, procurement, and construction (EPC) aspects of the project will be handled by WHC, LLC, ensuring that the project is executed with high standards of quality and efficiency, while Black & Veatch provides technical advisory services.

The significance of Project SunRoper extends beyond its immediate energy production capabilities. According to Sabah Bayatli, President of OCI Energy, this project not only represents a commitment to renewable energy but also aims to enhance grid reliability and affordability. Such initiatives are increasingly important as regions like Texas continue to experience high electricity demand.

Arava Power's CEO, Ilan Zidkony, commented on the strategic nature of this project within their broader expansion plans in the U.S., aiming for over 1 GW of solar capacity in the coming two years. Zidkony emphasized the exceptional partnership dynamics established with OCI Energy, which contribute to the successful execution of their energy projects.

Sven Wellock, Managing Director at ING, highlighted the project's alignment with their investment strategy, focusing on high-quality renewable infrastructure. He expressed pride in supporting a project that promises to deliver reliable and affordable clean energy to one of the nation’s most prominent power markets.

With commercial operations set to commence in the third quarter of 2027, Project SunRoper is expected to play a critical role in meeting the energy demands of the surrounding region. As the project's timeline unfolds, stakeholders and communities will be keenly watching the development, which not only symbolizes a shift toward sustainable energy but also embodies economic opportunity and environmental stewardship.

In conclusion, Project SunRoper stands as a beacon for future solar energy developments, illustrating how strategic partnerships and innovative financing can facilitate the growth of essential renewable resources in today's energy-conscious world. The collaboration between OCI Energy, Arava Power, and ING Capital exemplifies the potential for growth in the renewable sector and paves the way for significant advancements in energy production and management in the U.S.