Hannon Armstrong and ENGIE to Jointly Invest in 2.3 GW Portfolio of U.S. Wind and Solar Projects
July 02 2020 - 1:00AM
Business Wire
Hannon Armstrong Sustainable Infrastructure Capital, Inc.
(“Hannon Armstrong”) (NYSE: HASI), a leading investor in climate
change solutions, today announced a newly-formed partnership with a
subsidiary of ENGIE S.A., the largest independent power producer
(IPP) and energy efficiency services provider in the world, that
will own a 2.3 gigawatt (GW) portfolio of wind and utility-scale
solar assets.
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Photo Credit: ENGIE
The partnership combines Hannon Armstrong’s extensive experience
in providing long-term investment for climate solutions with the
best-in-class development and operations experience of ENGIE, a
global energy and services leader dedicated to accelerating the
deployment of clean, affordable, innovative and resilient energy
solutions.
On commissioning, the 2.3 GW portfolio will be comprised of 1.8
GW of onshore wind and 0.5 GW of utility-scale solar photovoltaic
(PV) projects (13 projects in total) located in five states. Hannon
Armstrong will participate in the cash flows from the operations of
this diversified portfolio of renewable energy projects, while
ENGIE will retain a controlling share in the portfolio and continue
to manage the assets.
“We have a common mission to accelerate the rapid adoption of
climate change solutions, and we are pleased to partner with ENGIE
once again with this new investment that adds significant scale and
diversity to our portfolio,” said Hannon Armstrong Chairman and CEO
Jeffrey W. Eckel. “Continuing to build a programmatic investment
platform allows both firms to make the investment process more
aerodynamic and cost-effective for ENGIE’s ultimate customers,”
added Eckel.
“The U.S. is a key growth market for our renewables business,
where we are accelerating fast, from 0 MW in 2018 to 2 GW that
should be commissioned in 2020. We have a strong pipeline of
opportunities and a solid development and operational platform to
grow from. We are delighted to have partnered with Hannon
Armstrong, a company solely dedicated to investments in climate
change solutions,” said Gwenaelle Avice-Huet, Executive
Vice-President responsible for ENGIE Renewables business line and
CEO of ENGIE North America.
Highlights
- The portfolio includes nine onshore wind and four utility-scale
solar projects located in five states, representing 2.3 GW of gross
generating capacity in aggregate. Under the agreement, Hannon
Armstrong will take immediate ownership of 49% of 663 megawatts
(MW) from four operating onshore wind projects. The remaining 1.6
GW of projects (five onshore wind and four utility-scale solar PV
projects) currently under construction will be transferred into the
partnership upon commissioning.
- Assets are located in geographically diversified wind and solar
resource regions and wholesale power markets, including Electric
Reliability Council of Texas (ERCOT), Midcontinent Independent
System Operator (MISO), PJM Interconnection (PJM), and Southwest
Power Pool (SPP).
- With a weighted average contract life of 13 years, the
portfolio's cash flows are contracted with highly creditworthy
off-takers who enjoy a weighted average credit rating of A+,
including Amazon, Allianz, Ingersoll Rand, Microsoft,T Mobile,
Target, Walmart, and Xcel Energy.
- Once fully funded, this portfolio is expected to significantly
increase and diversify Hannon Armstrong's balance sheet portfolio
and support continued growth in recurring Net Investment
Income.
- With a CarbonCount® score of 2.01 metric tons of carbon dioxide
equivalent (CO2e) reduced annually per $1,000 invested, Hannon
Armstrong's equity investment will avoid an estimated 1.1 million
metric tons of CO2e in the first year of operations, equivalent to
the CO2e emissions from 125,000 U.S. homes' annual energy use.
About Hannon Armstrong
Hannon Armstrong (NYSE: HASI) is the first U.S. public company
solely dedicated to investments in climate change solutions,
providing capital to leading companies in energy efficiency,
renewable energy, and other sustainable infrastructure markets.
With more than $6 billion in managed assets as of March 31, 2020,
Hannon Armstrong's core purpose is to make climate-positive
investments with superior risk-adjusted returns. For more
information, please visit www.hannonarmstrong.com. Follow Hannon
Armstrong on LinkedIn and Twitter @HannonArmstrong.
About ENGIE North America
ENGIE North America Inc. offers a range of capabilities in the
United States and Canada to help customers decarbonize,
decentralize and digitalize their operations. These include
comprehensive services to help customers run their facilities more
efficiently and optimize energy and other resource use and expense;
clean power generation; energy storage; and retail energy supply
that includes renewable, demand response, and on-bill financing
options. Nearly 100% of the company's power generation portfolio is
low carbon or renewable. Globally, ENGIE S.A. relies on their key
businesses (gas, renewable energy, services) to offer competitive
solutions to customers. With 170,000 employees, customers, partners
and stakeholders, we are a community of Imaginative Builders,
committed every day to more harmonious progress. For more
information on ENGIE North America, please visit our LinkedIn page
or Twitter feed, www.engie-na.com and www.engie.com.
Forward Looking Statements
Some of the information in this press release contains
forward-looking statements and within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. When used in this
press release, words such as "believe," "expect," "anticipate,"
"estimate," "plan," "continue," "intend," "should," "may,"
"target," or similar expressions, are intended to identify such
forward-looking statements. Forward-looking statements are subject
to significant risks and uncertainties. Investors are cautioned
against placing undue reliance on such statements. Actual results
may differ materially from those set forth in the forward-looking
statements. Factors that could cause actual results to differ
materially from those described in the forward-looking statements
include those discussed under the caption "Risk Factors" included
in our Annual Report on Form 10-K for our fiscal year ended
December 31, 2019, which was filed with the U.S. Securities and
Exchange Commission ("SEC"), as well as in other reports that we
file with the SEC.
Forward-looking statements are based on beliefs, assumptions and
expectations as of the date of this press release. We disclaim any
obligation to publicly release the results of any revisions to
these forward-looking statements reflecting new estimates, events
or circumstances after the date of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200701006004/en/
Hannon Armstrong Gil Jenkins media@hannonarmstrong.com
443-321-5753
Chad Reed investors@hannonarmstrong.com 410-571-6189
ENGIE North America Sandrine Deparis sandrine.deparis@engie.com
202-855-3705
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