Longroad Energy—a US-based renewable energy developer, owner and operator—has announced the financial closing of its Sun Pond solar project. This 111 MWdc solar and 85 MWac/340 MWh storage facility is part of the Longroad Sun Streams Complex.
Sun Pond Solar Project to Power 35,000 Homes
The Sun Pond solar project will supply its output through long-term Power Purchase Agreements (PPAs) with the City of San Jose, California and Ava Community Energy. The project is expected to produce enough electricity to power around 35,000 average American households.
Paul Gaynor, CEO of Longroad Energy, said: "With the financial close and commencement of construction of Sun Pond, Longroad has achieved more than 970 MWdc of financed and under-construction solar projects in Maricopa County representing $2 billion in investment. The project exemplifies our commitment to delivering meaningful benefits to energy buyers and communities. We are providing customers with clean, affordable renewable energy to support grid reliability, while contributing to the local economy through lease and tax payments totaling $30 million for public schools and local jurisdictions. This project also supports family-sustaining jobs."
Solar Project Advances Longroad-First Solar Partnership
The Sun Pond project marks the continuation of a long-standing partnership between Arizona-based solar manufacturer First Solar and Longroad. It is the fifth Arizona solar project in the past four years to utilize First Solar's uniquely American photovoltaic solar technology financed by Longroad.
"We are thrilled that our relationship with Longroad continues to grow in strength and that our modules will not simply power Sun Pond, but the communities it will serve. As America's solar company, we are proud of our technology's role in delivering cost-competitive electricity to support our nation's economic growth and energy security.” said Georges Antoun, Chief Commercial Officer, First Solar.
U.S. Bancorp Impact Finance led the debt financing for the project, joined by Commerzbank AG and CIBC. As Coordinating Lead Arranger, Administrative Agent, Collateral Agent and Depositary, U.S. Bancorp Impact Finance also serves as the project's tax equity investor. Meanwhile, CIBC acted as Joint Lead Arranger and Green Loan Coordinator.
"U.S. Bancorp Impact Finance is dedicated to creating a sustainable future and we are thrilled to finance Sun Pond and continue expanding access to renewable energy in Arizona. Our team's ability to offer comprehensive financing solutions such as tax equity financing and project finance debt and demonstrates U.S. Bank's commitment to meeting the needs of our clients like Longroad. Sun Pond is one of several Longroad projects we've financed, showcasing our team's collaborative approach to delivering tailored solutions," said Darren Van't Hof, Managing Director of Environmental Finance at U.S. Bancorp Impact Finance.
McCarthy Leads EPC for the Project, Creating 200+ Jobs
McCarthy Building Companies (McCarthy) serves as the engineering, procurement and construction (EPC) contractor for the Sun Pond solar project. The construction is expected to create over 200 jobs, thereby McCarthy employing registered apprentices and ensuring all workers are paid prevailing wages as mandated by the Inflation Reduction Act (IRA).
"Building solar projects allows us to further develop Arizona's solar workforce while also investing in our nation's diverse energy infrastructure. We are thrilled to be part of another major solar energy and storage project with Longroad Energy in Arizona and for the economic opportunities it provides our community." said Chris Fletcher, McCarthy Vice President of Operations.
Sun Pond will prevent over 145,000 metric tons of CO2 emissions annually. Throughout its lifespan, the solar project is expected to generate more than $30 million in revenue for Arizona schools and communities through its long-term lease with the Arizona State Land Department and tax payments. Longroad expresses its gratitude to the staff and officials from Maricopa County and the Arizona State Land Department for their ongoing collaboration during the project's development and construction.