Apex will continue to own a 25% stake and manage the operations of the facilities, with ERG acquiring a 75% stake
Apex announces strategic asset sale to ERG. (Credit: Mar from Pixabay)
Apex Clean Energy today announced an agreement with ERG, a leading European renewable energy producer, for the partial sale of a portfolio of operating clean energy assets in the United States. Apex will continue to own a 25% stake and manage the operations of the facilities, with ERG acquiring a 75% stake.
The portfolio—the first in a series that will support Apex’s capital recycling program—includes 224.4 MW Great Pathfinder Wind in Iowa and 92.4 MWDC Mulligan Solar in Illinois. The projects began commercial operations in February 2023 and July 2022 respectively. The two assets benefit from tax equity investments and long-term power purchase agreements with market-leading counterparts.
“Great Pathfinder and Mulligan represent the successful launch of our capital recycling program, intended to bring best-in-class renewable portfolios to market and enabling our team to advance more megawatts than ever before,” said Ken Young, CEO of Apex. “In ERG, we’ve found a new partner with a shared commitment to driving the energy transition. As we celebrate this first collaboration, we envision the potential for a long-term partnership that will not only advance our organizations, but also accelerate decarbonization at scale.”
Apex was advised on the transaction by J.P. Morgan Securities LLC and Santander.
The transaction’s closing is expected within the first half of 2024 and is subject, inter alia, to investment approval from certain U.S. and European authorities (including CFIUS, HSR Commission, and DG Comp) and the consent to the change of control from relevant third parties (including tax equity investors and PPA counterparts).
Source: Company Press Release