Lincoln Clean Energy, the U.S. onshore wind development business of Ørsted, has lined up a tax equity investor for a wind project in Texas and is preparing to seal financing for a second later this year.
Berkshire Hathaway Energy is buying the passive stake in the first of the two projects, the 183.75 MW Lockett Windfarm in Wilbarger County, according to paperwork filed with the Texas Public Utility Commission on Feb. 27.
The project has a 10-year power purchase agreement with Allianz for 80% of its capacity, according to an Ørsted investor presentation from November. It will be fitted with 75 General Electric turbines.
The second project is the 300 MW Sage Draw wind farm in Lynn and Garza counties, on which the developer plans to make a final investment decision in the second half of the year. Sage Draw has a 12-year PPA with ExxonMobil for 250 MW, or 83% of its output (PFR, 11/29).
The size of Berkshire Hathaway's investment in the Lockett Windfarm could not be determined by press time. A spokesperson for Ørsted in Copenhagen declined to comment and spokespeople for Berkshire Hathaway did not immediately respond to an inquiry.
The facility is expected to be operational by June and the tax equity investment is due to close by June 28, according to the Texas PUC filing, which was submitted by law firm Stahl, Davies, Sewell, Chavarria & Friend on behalf of Lincoln.
A taste for Texas wind
The Lockett project is the latest of several in Texas to be financed by BHE through its MidAmerican Wind Tax Equity Holdings vehicle.
Other Texas wind farms, including repowering projects, to have secured tax equity commitments from Berkshire of late include:
- Longroad Energy Holdings' 238 MW Rio Bravo project in Starr County (PFR, 6/1/18),
- Copenhagen Infrastructure Partners' 148.35 MW Blue Cloud project in Lamb and Bailey counties, in the part of the state that participates in the Southwest Power Pool (PFR, 10/12),
- a group of three Ares Management repowering projects comprising the 60 MW Silver Star I project in Eastland and Erath counties, 145 MW Sherbino II project in Pecos County and 225 MW Trinity Hills project in Archer and Young counties (PFR, 1/3), and
- E.On's Panther Creek I and II repowering projects in Howard County (PFR, 1/31).