E.ON Climate & Renewables (EC&R) North America said March 27 that it has secured institutional equity financing of about $174.9m and a commitment to fund further capital contributions from a group of investors in exchange for a partial interest in EC&R’s Wildcat I Wind Farm in Indiana.
The group of investors includes JPM Capital Corp. (J.P. Morgan) and Wells Fargo Wind Holdings LLC. J.P. Morgan acted as lead investor in the financing.
“We’re delighted to demonstrate continued success in the tax equity market and we’re pleased to show the attractiveness of our wind energy portfolio,” said Dr. Verena Volpert, Senior Vice President Finance, E.ON SE. “Working with an investor team that includes J.P. Morgan and Wells Fargo proves our ability to raise capital in a tax-efficient manner.”
The project, located in Tipton and Madison counties, is EC&R’s first wind energy project in Indiana and began commercial operation in December. A total of 125 GE 1.6-MW turbines provide more than 200 MW.
“Wind farms generate clean, affordable, homegrown electricity, creating jobs and providing an economic shot in the arm to farmers, ranchers and rural communities across America,” said Steve Trenholm, CEO, EC&R North America. “Our success with Wildcat I allows us to expand our relationship with two leaders in the tax equity market, J.P. Morgan and Wells Fargo.”
This project is expected to generate more than $31m in local taxes, pay $11m in local salaries, and earn landowners more than $73m. At the height of construction, the Wildcat I Wind Farm project brought more than 200 jobs to the area.
EC&R is responsible for the E.ON group’s large-scale renewable energy activities around the world. It has already invested €8 billion in renewable energy projects and will continue to expand the share of renewable energy in E.ON’s power generation portfolio.