PHILADELPHIA, PA — In a significant move towards expanding its renewable energy footprint, Doral Renewables LLC recently announced the closure of a substantial construction debt financing deal, amounting to $114 million, for its pioneering Great Bend Solar project in Ohio. This financial milestone was achieved through a partnership with HSBC, which served as the sole lender, marking a notable collaboration aimed at advancing the transition to cleaner energy sources.
The financing package comprises a $36 million construction-to-term loan facility, a $57 million tax equity bridge loan, and a $21 million letter of credit facility. These financial instruments are pivotal in supporting the construction phase of the Great Bend Solar project, located on 370 acres in Meigs County, Ohio, approximately 100 miles southeast of Columbus.
Great Bend Solar is set to become a ground-breaking installation within the central region of PJM, featuring a ground-mounted single-axis photovoltaic (PV) system with a capacity of 48 MWac. This venture not only represents Doral’s first investment in Ohio but also signifies a major step towards bolstering the state’s renewable energy infrastructure. Once operational, the project is expected to supply power to around 9,000 homes, underscoring the significant impact of such renewable initiatives on local communities and the broader energy grid.
In addition to its environmental benefits, the project is anticipated to generate over $400,000 per year in new annual tax revenue for Meigs County, highlighting the economic advantages of investing in renewable energy projects. Such ventures not only contribute to reducing carbon emissions but also play a crucial role in stimulating local economies through job creation and increased tax revenues.
The financing arrangement with HSBC reflects a shared commitment to fostering sustainable energy solutions. Paul Snow, Head of Renewables, Americas at HSBC, lauded the partnership with Doral Renewables, emphasizing HSBC’s dedication to supporting premier renewable projects. James Gallagher, Head of International Banking USA at HSBC, echoed this sentiment, expressing enthusiasm for the bank’s role in promoting a net-zero global economy through strategic investments in clean energy.
Evan Speece, Chief Financial Officer at Doral Renewables, expressed excitement about the collaboration with HSBC and the potential for the Great Bend Solar project to pave the way for further renewable energy developments in the United States. The successful financing of this project not only enables its progression to commercial operation, slated for the end of 2025, but also sets a precedent for future endeavors in the renewable sector.
This partnership between Doral Renewables and HSBC represents a significant advancement in the renewable energy landscape, demonstrating the crucial role of financial institutions in enabling the growth and sustainability of clean energy projects. As the Great Bend Solar project progresses, it stands as a testament to the transformative potential of renewable energy investments to drive environmental and economic progress.
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