Recurrent Energy, a subsidiary of Canadian Solar Inc., has announced the successful procurement of $160 million in project financing for its Bayou Galion Solar project in Morehouse Parish, Northeast Louisiana. The 127 MWdc project, currently in the construction phase, is slated for completion by fall 2024.
Microsoft Corporation has committed to purchasing all the energy and renewable energy credits generated by the Bayou Galion Solar project, aligning with its objective to achieve carbon negativity by 2030. This initiative marks a significant expansion of renewable energy capacity in Louisiana, where only 145 MW of wind, solar, and energy storage capacity were operational as of September 2023.
Mitsubishi UFJ Financial Group, Inc. (MUFG) served as the Coordinating Lead Arranger for the project financing.
Fred Zelaya, Managing Director of Project Finance Americas at MUFG, expressed the institution’s satisfaction in supporting Recurrent Energy and facilitating Microsoft’s climate objectives through this project.
Development of the Bayou Galion Solar project commenced in 2018, with construction initiated in December 2023. Recurrent Energy has enlisted Primoris Renewables Energy, Inc. as the engineering, procurement, and construction partner. Upon completion, Recurrent Energy will assume ownership and operational responsibility for the project, furthering its commitment to expanding renewable energy projects within its operating portfolio.
Ismael Guerrero, CEO of Recurrent Energy, hailed the successful project financing and power purchase agreement (PPA) signing for Bayou Galion Solar as a significant achievement. He emphasized the project’s importance in advancing Recurrent Energy’s pipeline in new markets and increasing project ownership. Guerrero also highlighted the project’s role in establishing new partnerships with MUFG and Microsoft, underscoring Microsoft’s stature as one of the world’s largest buyers of renewable energy.
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