Italian renewables company ERG is entering the US market through an alliance with Apex Clean Energy, which will see it acquire 317MW of wind and solar assets.
A US-based holding company, including a wind farm and a solar plant, will be set up under the agreement.
The portfolio includes 317MW of installed capacity and production of one terawatt-hour, along with a cooperation agreement on 1GW of new US solar and onshore wind projects under development.
Among these projects are the 224.4MW Great Pathfinder Wind in Iowa and the 92.4MW Mulligan Solar in Illinois, which became operational in February 2023 and July 2022, respectively.
ERG will own 75% of the holding company for $270m. Apex will own the remaining 25% and continue the operational management of the portfolio.
The deal awaits regulatory clearance, with completion due in the first half of 2024.
ERG CEO Paolo Merli stated: “[This is a] unique opportunity to continue growing our project portfolio, increasing geographical and technological diversification with the acquisition of best-in-class operational assets and significant growth prospects through a cooperation agreement for about 1GW under development.
“We have had the opportunity to appreciate Apex’s seriousness, know-how and excellent track record. We expect to present our strategy and growth targets in the US to the financial community in the first half of next year with the 2024 to 2028 industrial plan. This strategic partnership concludes a 2023 of significant changes and exceptional growth for ERG, now a pure and more international renewable player.”
Apex CEO Ken Young stated: “Great Pathfinder and Mulligan represent the successful launch of our capital recycling programme, intended to bring best-in-class renewable portfolios to market and enabling our team to advance more megawatts than ever before. In ERG, we have found a new partner with a shared commitment to driving the energy transition. As we celebrate this first collaboration, we envision the potential for a long-term partnership that will not only advance our organisations but also accelerate decarbonisation at scale.”
