Vesper Energy, a prominent developer, owner, and operator of large-scale renewable energy projects, has successfully secured financing for its Hornet Solar project. The project aims to provide renewable energy to communities across Texas, contributing to grid stability and addressing price volatility in ERCOT.
Robert Scheuermann, Chief Financial Officer of Vesper Energy, highlighted the complexity of securing project financing for the Hornet Solar project in West Texas and considered it a significant achievement. Scheuermann expressed the company’s pride in partnering with top-tier lenders and investors, emphasizing the value created by Vesper Energy in the asset.
Spanning an expansive area of over six square miles in Swisher County, TX, the Hornet Solar project is expected to generate 600 MWac of power, which is enough to supply electricity to approximately 160,000 homes annually. Once completed, it will rank as one of the largest single-phase solar projects in the United States.
Vesper Energy secured a substantial $590 million debt financing package for the Hornet Solar project, consisting of a construction-to-term loan and a letter of credit facility. The financing was led by notable financial institutions, including MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking.
Matt Curtin, Director at MUFG, expressed confidence in Vesper Energy’s capabilities and praised the partnership, highlighting MUFG’s commitment to supporting ambitious clean energy solutions. Nicolai Dillow, Managing Director/Head of Originations at Nord/LB, also emphasized the bank’s dedication to facilitating energy transition projects like Hornet Solar, demonstrating support for Vesper Energy in the renewable energy sector.
The financing structure leverages the Purchase Tax Credit (PTC) transfer funding made possible by provisions under the Inflation Reduction Act. Advantage Capital facilitated the purchase commitment, enabling over $500 million of PTCs to be monetized and utilized by the loan facility.
Blattner Energy has been entrusted with the construction of the Hornet Solar project, which will utilize bifacial photovoltaic modules on a single-axis tracking system. The project is set to connect to Oncor Electric’s transmission system in ERCOT.
The power generated by the Hornet Solar project is contracted to four off-take partners through individual Power Purchase Agreements.
