Eni and Falck Renewables to develop new renewable projects in United States
Eni and Falck Renewables have signed a strategic agreement to jointly develop renewable energy projects in the United States.
A 50-50 joint venture owned by Eni New Energy US Inc. (ENE US) and Falck Renewables North America Inc. (FRNA) will develop, construct, and finance new solar photovoltaics, wind onshore and energy storage projects. Under the terms of the agreement, FRNA will simultaneously sell ENE US 49% of its ownership interests in the plants currently in operation in the United States.
The deal enables the two partners to:
- establish a significant platform for the development of new projects from renewable sourcesin an evolved US market, which offers significant growth prospects.
- operate through a new company that will cover the phases of development, construction and
- financing of new projects combining Falck Renewables’ know-how in renewable assets together with Eni’s technological and financial capabilities.
- accelerate the growth of Eni and Falck Renewables in the US and help reach their respective goals in terms of installed capacity and green energy generation.
The venture, which will have shared governance, will develop at least 1 GW in projects by the end of 2023. ENE US and FRNA will have various options to acquire projects from the venture.
The sale to ENE US of 49%2 of FRNA’s existing assets pertains to a 112.5 MW portfolio comprising five photovoltaic plants in operation in North Carolina and Massachusetts, one of which, Middleton, Massachusetts, has an energy storage facility of 6.6 MWh. These plants will continue to be operated, controlled and consolidated by FRNA, which will own 51%.
The total value to be paid by ENE US to FRNA will be approximately USD70 million at closing, including a solar panel stock valued approximately USD12.7 million, to be adjusted in line with market practice.
Closing is subject to certain conditions precedent and is expected by the first quarter of 2020.