US-based renewable energy developer Longroad Energy has closed financing and begun construction on the 243MW El Campo wind farm in Knox County in the US state of Texas.
Longroad Energy secured financing from PKA and PenSam, two Denmark-based pension funds, being represented by AIP. Alongside Longroad PKA and PenSam have also become long-term investors in the project.
Being built at a cost of about $335m (£268m), the wind farm will be powered by 67 of Vestas turbines which would range in size between 2MW and 4.2MW each.
Mortenson Construction has been given the engineering, procurement and construction (EPC) contract for the wind farm, which is expected to be operational by July 2020.
Longroad Energy CEO Paul Gaynor said: “Longroad is pleased to bring this deal through this crucial step and to partner with PKA and PenSam through AIP.
“We are proud of our track record in developing, financing, constructing, owning and operating well-structured renewable assets in the US. This approach appealed to AIP and its investors; and the investment in El Campo is a great first step to take with our new partners.
“It’s great to be able to work with high caliber groups such as PKA, PenSam, and AIP. We hope this is the first of many partnerships with this team in the US.”
DaVita, a medical care services firm, will buy 83MW of power and packaging firm Crown Holdings will purchase 111MW of power from the wind project under two corporate power purchase agreements.
PKA chief investment officer Michael Pedersen said: “The El Campo wind farm is our second sizeable investment in renewable assets in the US within a year and it represents yet another important addition to our ambitious green investment strategy.
“We are delighted to partner with an experienced renewable energy developer like Longroad Energy and we are optimistic about extending the partnership even further in the future.”
PenSam chief investment officer Claus Jørgensen said: “A project of this size fits our portfolio very well and provides future cash flows from a contract with offtakers committed to purchasing renewable energy.
“We are proud to contribute to this investment and thankful for the support of our execution partners, AIP and Longroad Energy for securing affordable clean renewable energy.”
