Fengate is pleased to announce financial close and notice to proceed with construction of the 160-megawatt (“MW”) Prairie Switch Wind project located outside of Houston, Texas (the “Project”).
Fengate closed on construction and term financing with MUFG to fund the construction and operation of the Project, and tax equity financing with GE Energy Financial Services and Tyr Energy to monetize the production tax credits.
The Project will utilize 48 of GE Renewable Energy’s 3.4 MW wind turbines and will be constructed by Infrastructure & Energy Alternatives by the end of 2023. As part of this transaction, Fengate and Meta Platforms, Inc. (“Meta”) signed a long-term power purchase agreement (“PPA”) for 100 percent of the Project’s production.
Located near the city of El Campo in Wharton County, the Project, once built, will inject millions of dollars of tax and lease payments into the County while synergistically allowing current ranching and farming operations to continue without material interruption or displacement.
“With this acquisition, Fengate continues to successfully implement our develop-to-core strategy by acquiring a late-stage wind development project then finalizing development, funding development expenses, posting contract security, and closing the debt and tax equity financing,” said Greg Calhoun, Managing Director, Infrastructure Investments. “We are pleased to partner with Meta, GE, Tyr and MUFG on this important project that fully aligns with Fengate’s commitment to invest in North American renewables on behalf of our investors and to deliver clean and reliable energy.”
Fengate is managing this investment and development as part of the firm’s renewable energy strategy on behalf of its investors, including an investment fund owned by the LiUNA Pension Fund of Central and Eastern Canada.