Building Energy SPA, a multi-national company operating as a global integrated IPP in the Renewable Energy Industry, announced the closing of a Partnership Agreement and a Capital Contribution Agreement between its U.S. subsidiary Building Energy Wind Iowa and Capital One Bank.
The agreements are for the construction and operation of their first distributed-generation wind farm located in Iowa, which will add up to 30 MW of wind generation capacity.
The project, which requires a total equity investment of approximately 56 million is supported by a long-term power purchase agreement (PPA). Capital One Bank commits to a tax equity contribution of approximately $33 million to the project portfolio and will release funds at the commercial operation date expected in the fourth quarter of 2016, subject to fulfillment of requirements outlined in the capital contribution agreement.
The equity interest will allow them to obtain the tax and financial benefits attributed to the project.
The Iowa Wind Distributed Generation project represents the first wind farm developed by Building Energy and Optimum Renewables, a local developer, under a strategic development agreement. The project, located north of Des Moines, in Story, Boone, Hardin and Poweshiek counties, is comprised of 10 onshore wind turbines, each with a rotor diameter of 125 meters and a 3.0-MW generator mounted on an 87.5 meter steel tower.
Building Energy’s Wind farms will generate 110,000 MWh per year, avoiding approximately 100,000 tons of CO2 emissions according to U.S. Environmental Protection Agency methodology, the equivalent of the annual emissions from approximately 21,276 cars removed from the road.
The project benefits from the strong wind resources in the state of Iowa and the wind farm will be built in four different counties to provide renewable energy to as many local communities as possible and to keep electricity rates stable and affordable. The company, however, has been present in the U.S. market since 2013 with its offices in Washington DC.
“We are extremely pleased with the closing of this agreement, which further demonstrates Building Energy commitment to Iowa and North America as a whole,” said Andrea Braccialarghe, Building Energy Managing Director. “A market in which we started off with a solar portfolio, we have now expanded into other generation technologies including wind power. We are planning to further expand our generation capacity in North America, continuing to leverage on our multi-technology strategy with our commitment to environmental responsibility”
“We are pleased to work with Building Energy, a global leader in the renewable energy market,” said George Revock, Managing Director and Head of Alternative Energy and Project Finance at Capital One Bank. “This investment will help Building Energy provide affordable and sustainable energy to local communities across Iowa, and also will advance Capital One’s sustainable energy initiative.”