Abengoa will collaborate with Capital Riesgo Global, a subsidiary of Banco Santander, which will become a financial partner in the development of Solana, a concentrating solar power plant in the US.

The proposed 280MW concentrating solar power plant is being constructed by Abengoa in Arizona.

Capital Riesgo Global will spend $125m in exchange for an equity stake in the power project, worth around $2,000m.

Abengoa obtained a federal loan guarantee for about $1.45bn in December 2010 from the US Department of Energy (DOE) Loan Programs Office to finance this project.

The investment, which has been approved by the DOE and the Federal Energy Regulatory Commission, will reduce Abengoa’s own capital requirement contribution and is fully compatible with the potential entry of a tax equity investor in the project.

The solar plant is expected to produce energy in late 2013 and will generate enough energy to supply 70,000 households and will prevent the emission of 475,000 tons of CO2 per annum.