SEOUL, Feb. 27 (UPI) — OCI Energy, a U.S. affiliate of South Korea’s OCI Holdings, said its joint venture with Arava Power has secured nearly $400 million for Project SunRoper, a 347-megawatt solar project in Wharton County, Texas.
OCI Energy joined with Israel’s Arava Power for the project. As sole lead arranger, ING Capital will underwrite the financing package, which includes a mix of loans and letters of credit.
The total investment is estimated to be about $394 million, according to OCI Energy. The construction financing is backed by a 20-year power purchase agreement with a Fortune 100 company, whose identity OCI Energy did not disclose.
Situated some 60 miles southwest of Houston, Project SunRoper is expected to begin commercial operation in the third quarter of next year, supporting grid reliability and emissions reduction.
“The close of construction financing for Project SunRoper represents an important milestone for OCI Energy and our partners,” OCI Energy CEO Sabah Bayatli said in a statement.
“This transaction reflects our continued commitment to delivering high-quality, utility-scale solar projects that strengthen grid reliability and provide affordable energy infrastructure,” he said.
ING Capital Managing Director Sven Wellock said the new initiative would deliver reliable, affordable clean energy for years to come.
“This project exemplifies the high-quality renewable infrastructure we seek to finance — a strong sponsor partnership, a long-term contracted revenue profile and a well-located asset in one of the most dynamic power markets in the United States,” he said.
This is not the first time that OCI Energy has collaborated with ING. They previously worked together on financing for the Alamo City Battery Energy Storage System project in Texas.