US-based green energy finance company BioPower Operations Corporation – doing business as HYFI Corp – has confirmed that Signet Capital will arrange a $450 million private placement for the first tranche of a green electricity generation project that will include solar and battery storage.
The project is the product of a joint venture with POWGEX ENERGY called POWGEX-HYFI which intends to â€œbuild, own and operate green electricity generating facilities for the next 45 yearsâ€.
BioPower will own up to 19.99% of the joint venture and received a $50 million equity investment in exchange for various deliverables including providing initial structured finance for $450 million and OEM relationships. BioPower has put together a consortium of banks, investment banks and institutions approved to provide structured project finance for electricity guaranteed by the power purchase agreements from off-takers.
In the first year it is expected that the electricity installations will begin in the fourth quarter for approximately 1GW of power at a cost of approximately $2.25 billion. In subsequent years, 5GW of installed capacity per year will be targeted.
A Biopower statement said a â€œmarket leading solar PV and battery storage OEMâ€ has been selected for the first gigawatt of deliverables to be provided and installed.