Primergy Secures $588 Million Financing and Microsoft Partnership for 408 Megawatt Solar Project in Texas

The successful funding and long-term Power Purchase Agreement (PPA) secured from Microsoft for the Ash Creek project underscore Primergy’s adeptness in developing, financing, constructing, and managing large-scale renewable energy initiatives,” stated Ty Daul, CEO of Primergy. “Ash Creek aligns seamlessly with our objective to invest in strategically positioned projects offering regional diversity to our portfolio, while also meeting the sustainability needs of prominent corporate clients like Microsoft. We are deeply grateful for the continued collaboration with leading clean energy financiers that has enabled us to realize this project.”

“We are committed to partnering with entities like Primergy that are actively driving the global energy transition forward,” added Louise Pesce, Managing Director of Project Finance Americas at MUFG. “Projects such as Ash Creek Solar, with its positive community impact, align with our vision for a sustainable future.”

The Ash Creek Solar project financing package comprises a construction loan, tax credit transfer bridge loan, and associated letters of credit. MUFG Bank, Ltd. and SMBC led the financing facilities as lead structuring arrangers, alongside seven coordinating lead arrangers, including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.

Construction of the Ash Creek Solar site, strategically located near existing fossil fuel plants and areas of high energy demand, is underway. Once completed, the project is projected to generate sufficient carbon-free energy to power approximately 90,000 homes annually.

Primergy has appointed SOLV Energy as the engineering, procurement, and construction partner for the project. Construction is anticipated to generate around 350 local full-time jobs, with six permanent positions created for operational management post-construction.

In addition to its economic impact, Ash Creek Solar is expected to provide significant benefits to the local community throughout its operational lifespan. It is estimated to contribute approximately $100 million in tax payments to Hill County and substantially expand the tax base of local school districts.

“Large-scale solar initiatives like Ash Creek Solar have far-reaching benefits for communities,” remarked George Hershman, CEO of SOLV Energy. “The project represents a long-term commitment to Hill County, generating revenue for local schools and services. We are honored to collaborate with Primergy in bringing the advantages of solar energy to more Texans.”