US-based Green & Clean Power (GCP) has raised $300m in debt and equity financing for the construction of a solar energy generation and battery storage facility in Osceola, Arkansas.
The funding includes $165m in construction debt financing from KfW IPEX-Bank, with Aurora Energy Research acting as market advisor.
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The Arkansas Teacher Retirement System has committed an additional $100m in takeout financing.
The 500-acre solar facility will be completed by the autumn of 2025.
GCP’s project will provide behind-the-metre renewable electrical energy to Hybar, its sister company.
Hybar’s steel rebar mill [a facility that manufactures “rebar” – reinforced steel made from raw materials such as scrap iron or steel] is also under construction and will commence operations in the summer of 2025. It will provide large infrastructure projects with rebar made from 100% recycled materials.
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By GlobalDataArkansas Teacher Retirement System executive director Mark White stated: “Sustainable steelmaking continues to make significant impacts on the state of Arkansas.
“We are pleased to support this newest entity, knowing it benefits our state, it benefits our environment and, most of all, it will benefit our members.”
The equity investors backing both GCP and Hybar include TPG through its TPG Rise Climate strategy, Quanta Services and Global Principal Partners.
DEPCOM Power, an engineering, procurement and construction company in the renewable sector, is tasked with delivering the project under a comprehensive lump sum agreement.
GCP will supply 40% of Hybar’s annual power needs from the project.
The collaboration will enable Hybar to guarantee its customers that their steel is produced using entirely renewable energy, aligning with its net zero targets.
GCP and Hybar chief finance officer and Global Principal Partners partner Ari Levy stated: “Unlike other industrial businesses which seek to invest in renewable power generation projects hundreds of miles away from their closest operation as a means of carbon offsetting, GCP’s production of solar and renewable-stored energy will be directly connected to Hybar. To our knowledge, this will be the first renewable power installation in the industry to provide a steelmaking facility with solar-generated electricity on a behind-the-meter basis.
“Access to renewable energy was a major component of Hybar’s mission and we appreciate the commitment of KfW IPEX- Bank, ATRS and the investment group that supported Hybar as we launch Green & Clean Power.”
GCP plans to apply for interconnection with the Midcontinent Independent System Operator (MISO) grid system in a process expected to take three years. Once linked to the grid, GCP can sell its solar-generated and battery-stored power to third-party customers.
