Hannon Armstrong Sustainable Infrastructure Capital, a climate solutions investor, has agreed to invest in about 1.6GW of onshore wind and solar portfolio being developed by Clearway Energy Group.

The renewable portfolio is spread across four US states, including California, Hawaii, Texas and West Virginia.

As per the terms of the investment which reached financial close recently, Hannon Armstrong has agreed to invest a total of about $663m in the portfolio. Till now, it has funded about $200m and expects to fund the remaining portion next year and in 2022.

Furthermore, the company will hold preferred equity interest in several of the holding companies that own the cash equity interests in individual portfolio operating projects and will also participate in the cash flows from such projects.

The portfolio includes three wind, one solar and three solar-plus-storage projects, totalling about 1.6GW in renewable energy and 395MW in energy storage.

The projects include the 482MW Daggett Solar with 320MW of co-located storage in San Bernardino County, California, the 419MW Mesquite Star wind farm located in Fisher and Nolan County, Texas, and the 345MW Mesquite Sky wind farm located in Callahan County, Texas.

The projects also include 192MW Rosamond Central solar project located in Kern County, California, the 110MW Black Rock wind farm in Mineral and Grant County, West Virginia and the 36MW Waiawa and the 39MW Mililani solar projects with a combined 75MW of co-located storage in Oahu, Hawaii.

According to Hannon Armstrong, the renewable energy portfolio is expected to offset nearly 703,000 metric tons of CO2 emissions annually, while generating enough clean energy to power 119,000 American homes.

Hannon Armstrong chairman and CEO Jeffrey Eckel said: “We are pleased to expand our relationship with Clearway Energy Group through a preferred equity investment in this portfolio of renewable assets.

“Clearway’s mission to accelerate the world’s transformation to a clean energy future is aligned with our purpose as a climate-positive investor.

“These assets will be a significant addition to our portfolio, offering increased scale and diversity to our business and supporting continued growth in recurring Net Investment Income.”