#United States #Texas #Longroad Energy #Yoakum County #1000 Mile Solar

Longroad Energy Reaches Financial Close for 1000 Mile Solar Project

Longroad Energy, a U.S.-based renewable energy developer, owner, and operator, has announced a significant milestone in its journey toward sustainable energy production. The company has achieved financial closure and commenced construction on the 1000 Mile Solar project, a massive 400 MWdc solar installation located in Yoakum County, Texas. This project marks Longroad's seventh renewable energy initiative in the state, reinforcing its commitment to advancing clean energy solutions.

In a strategic move, Longroad Energy finalized a long-term off-take agreement with Meta late last year, formalized as an Environmental Attributes Purchase Agreement. This innovative arrangement includes a financial settlement covering the energy output of the entire project, with commercial operations expected to launch in 2026. The output from the 1000 Mile project will be fed into the Southwest Power Pool (SPP) grid, playing a crucial role in helping Meta achieve its goal of powering its data centers with 100% renewable energy.

Paul Gaynor, CEO of Longroad Energy, expressed enthusiasm about the project, stating, "1000 Mile Solar is our seventh renewable energy project in Texas, and it stands as a landmark for Longroad Energy. This endeavor is particularly significant as it is our first venture in the SPP region, elevating our total successfully developed utility-scale projects to an impressive 2.1 GW across Texas's three main RTO regions: ERCOT, MISO, and SPP. We are grateful to our partners, including Meta, our banking collaborators, contractors at SOLV, suppliers, and local officials for their pivotal roles in bringing 1000 Mile to fruition."

The financial structure behind the 1000 Mile project includes a notable commitment from Morgan Stanley Renewables Inc., which has stepped in to provide tax equity financing. Jorge Iragorri, Managing Director and Co-Head of Infrastructure Capital Markets at Morgan Stanley, expressed excitement about collaborating with Longroad on this project, calling it a landmark deal for the company. Debt financing arrangements were spearheaded by Societe Generale and CIBC, supported by other notable institutions including ANZ, Barclays, and Key Bank. Ahmed Maqsood, Director at Societe Generale's Energy+ Group, reiterated the project's significance, stating that this financing will empower Longroad to deliver essential renewable power to meet the escalating demand for energy in the region.

Additionally, the 1000 Mile project will utilize First Solar's advanced photovoltaic technology, further emphasizing its commitment to American-made solutions. First Solar’s Series 7 modules will be employed, reflecting an investment in domestic energy technology that is not only innovative but also aims to enhance grid reliability.

SOLV, the engineering, procurement, and construction (EPC) contractor, is tasked with bringing the project to life, which is projected to employ over 400 workers at its peak construction period. SOLV Energy has demonstrated its dedication to delivering exceptional EPC services alongside infrastructure and technologies that ensure long-term operational reliability.

As a noteworthy feature, Nextracker will supply the smart tracker equipment, incorporating a new 75-degree stow capability, optimizing energy capture. Longroad will also provide ongoing operations and maintenance services via its affiliate, Longroad Energy Services, supplemented by additional support from Northstar Energy Management, LLC.

From an environmental perspective, the 1000 Mile Solar project is anticipated to significantly reduce regional emissions, translating to approximately 475,000 metric tons of CO2 equivalent annually. An analysis by REsurety indicates that the carbon abatement impact of this project is projected to exceed that of similar solar installations across the United States by over 20%. Moreover, it is estimated that the project will generate over $18 million in tax revenue for local jurisdictions throughout its operational lifetime.

Longroad Energy, founded in 2016, has emerged as a key player in renewable energy development, focusing on operational assets and services. With a portfolio encompassing over 6 GW of renewable projects across the U.S., Longroad has successfully raised $17.3 billion to support these initiatives. Today, the company boasts ownership of 4.1 GW of wind, solar, and storage projects while managing a total of 6.1 GW on behalf of itself and third-party entities.

Through collaborations and community engagement, including ongoing support from local officials in Yoakum County, Longroad Energy is committed to powering forward-thinking companies and communities with sustainable, reliable energy solutions.