$267 million financing leverages Production Tax Credit (PTC) structure made available for solar in the Inflation Reduction Act of 2022
Lightsource bp has successfully closed on a $267 million tax equity investment from Fortune 500 Wells Fargo & Company (NYSE: WFC), a leading financial services company with approximately $1.9 trillion in assets. The tax equity investment by Wells Fargo is in addition to Lightsource bp’s sponsor equity investment and complements the debt financing package which originally closed in December 2021.
“We are pleased to support Lightsource bp in its efforts to supply low-cost, emission-free solar electricity in Louisiana and Arkansas,” said Shane Easter, a director with Wells Fargo’s Renewable Energy & Environmental Finance group. “Providing expertise and capital to important customers like Lightsource bp is part of our commitment to deploy $500 billion in sustainable financing by 2030 to support our customers and communities as they transition to a resilient, equitable and sustainable future.”
Well Fargo’s investment will support the construction and operation of a two-project portfolio totaling 481 megawatt dc (MW), which are among the largest projects in each state, and include:
- 346MW Oxbow Solar in Pointe Coupee Parish, Louisiana with energy sales to McDonald’s and eBay
- 135MW Conway Solar near Happy, Arkansas with energy sales to Conway Corp
As the tax equity investor, Wells Fargo is now the eighth global financial institution to support this portfolio of projects, joining the portfolio’s project finance lenders including HSBC Bank USA, ING Capital LLC, Societe Generale, NatWest, Intesa Sanpaolo, Standard Chartered Bank, and Allied Irish Banks.
Collectively, the projects will abate more than 630,00 metric tons of greenhouse gas emissions each year. Both projects are scheduled to come online starting in 2023, creating 600 direct construction jobs.
“This investment is a great example of the positive impact that top tier financial institutions with meaningful commitments to sustainability such as Wells Fargo can make to help accelerate our country’s transition to a low-carbon economy and reduce the impacts of climate change that affect lives and livelihoods,” said Kevin Smith, Lightsource bp’s CEO of the Americas. “The new tax credit options and stable policy environment for job growth made possible by the Inflation Reduction Act will further incentivize investment and spur the growth of America’s solar industry.”
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is a leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.
About Lightsource bp
Lightsource bp is a global leader in the development and management of solar energy and energy storage projects and a 50:50 joint venture with bp. For more than a decade, Lightsource bp has delivered affordable, safe and sustainable energy to businesses and communities around the world. Their team includes nearly 1,000 industry experts, working in 19 countries, providing full scope development for projects, from initial site selection, financing and permitting to long-term management of solar projects and energy sales to their customers. Lightsource bp in the U.S. is headquartered in San Francisco with development offices in Denver, Austin, Philadelphia and Atlanta. Since 2019, the team has brought into operation or initiated construction on U.S solar projects with capital costs of more than $4 billion, including projects in 10 states. For more information visit www.lightsourcebp.com/us.