Eni acquires 49 percent of a 112.5 MW PV portfolio of Falck Renewables in the US
Post date: 22/01/2020 - 09:40
Italian oil and gas company Eni and Italian solar project developer Falck Renewables S.p.A. have signed a strategic agreement for the joint development of renewable energy projects in the U.S. The agreement involves the creation of a venture owned 50 percent by Eni New Energy (ENE US) and 50 percent by Falck Renewables North America (FRNA) for the development, construction and financing of new solar PV, wind onshore and energy storage projects. Under the terms of the agreement, FRNA will simultaneously sell ENE US 49 percent of its ownership interests in the plants currently in operation in the U.S.
The venture will be dedicated to 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, either consolidated line-by-line by ENE US (100 percent) or by FRNA (100 percent or with a minority 49 percent stake for ENE US). Funding for the joint development company and its profits will be split equally between the owners.
The sale to ENE US of 49 percent of FRNA's existing assets pertains to a 112.5 MW portfolio comprising five solar PV projects in operation in North Carolina and Massachusetts, one of which, Middleton (Massachusetts) has an energy storage facility of 6.6 MWh. These projects will continue to be operated, controlled and consolidated by FRNA, which will own 51 percent of them.
The total value paid by ENE US to FRNA will be approximately $70 million at closing, including a solar panel stock valued approximately $12.7 million. Closing is subject to certain conditions precedent and is expected by the first quarter of 2020.