innogy SE is advancing its renewables expansion strategy for the U.S. market. The Germany-based energy company, with UK private equity investor Terra Firma Capital Partners, has signed an agreement to acquire all of the shares in EverPower Wind Holdings’ U.S. onshore wind development business.
German-based, innogy, has reached an agreement to acquire EverPower’s onshore wind pipeline of more than 2 GWs. It includes the Highland Wind Farm in Cambria County, Pennsylvania. (Photo: EverPower)
The acquisition is subject to approval by the U.S. government’s Committee on Foreign Investment in the United States (CFIUS) with estimated closing of the transaction in the second quarter of 2018. All parties have agreed to maintain confidentiality regarding the purchase price.
“The U.S. market is one of our key strategic growth areas for renewables,” said Hans Bünting, Chief Operating Officer Renewables of innogy SE. “Establishing our subsidiary, innogy Renewables US LLC, in 2016 was our first step to enter this market. The acquisition of EverPower’s impressive pipeline is a logical step consistent with our commitment.”
With this acquisition, innogy will become the sole owner of more than 2 GW of onshore wind projects in various development stages located in attractive U.S. power markets for renewables. This portfolio will serve as a strong foundation for innogy’s long-term growth in the country.
This acquisition is a unique opportunity to combine the portfolio strength of more than 20 projects across seven states (Ohio, Pennsylvania, Montana, New York, Wyoming, Maryland, Maine).
“The project pipeline includes more than 500 MW in advanced stages of development, targeted to become operational by 2020 thanks to the hard work of the EverPower team, the backing of Terra Firma, and the assistance of innogy by Marathon Capital, LLC in this transaction,” said Andrew Young, CEO of Innogy US Renewables.
Execution of the pipeline will occur gradually. innogy will commercially assess every project under the hurdle rate framework. The company will also review all options regarding the ownership and financing structure to maximize value for the company and shareholders, and implement the growth in line with innogy’s targets regarding leverage and financial stability.
innogy has considerable experience in developing, designing, financing, constructing and operating renewables assets both independently, and together with project partners and investors. In addition to onshore wind innogy is also investigating project opportunities for offshore wind and solar in the U.S., and plans to enter other markets for renewable-based electricity generation such as Canada.
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