The company also holds an option to acquire the remaining 60% stake in the US firm
Spanish energy company Repsol is set to foray into the US renewables market by acquiring a 40% stake in Hecate Energy, a developer of solar photovoltaic (PV) and battery projects for energy storage.
The financial terms of the deal were not disclosed.
Based in Chicago, Hecate Energy has a portfolio of renewable projects with a capacity of over 40GW with assets across the US, Canada, and Jordan. The portfolio includes 16.8GW of advanced stage solar PV projects and energy storage associated with these assets.
Some of the notable projects of Hecate Energy are the 1.1GW Bonanza solar and storage project in Oregon, the 500MW Cider Solar project in New York, the 500MW Ramsey solar project in Texas, and the 500MW Roseland solar project in the same state.
The company alongside InfraRed Capital owns Hecate Grid, a battery platform launched in 2018 for holding energy storage assets. Currently, Hecate Grid has a capacity of 4.3GW.
Repsol said that the deal will help it become a major player in the solar and battery storage development market in the US, by taking part in Hecate Energy’s renewable project development business.
The acquisition is expected to make a significant contribution to Repsol’s goals of low-emission generation capacity and the internationalisation of the renewables business outlined in its 2021-2025 strategic plan.
As per the plan, the Spanish company is targeting 7.5GW of low-emission power generation in 2025 and 15GW in 2030.
Repsol client and low-carbon generation executive managing director María Victoria Zingoni said: “With this acquisition we enter the U.S. renewable market with the best possible partner and advance our strategic objective of becoming a global low-emissions operator.
“We continue to demonstrate our commitment to multi-energy and move forward with the transformation of Repsol into a net zero emissions company.”
The Spanish energy company also has the option of taking full ownership of the US firm three years after the closing of the deal.
Hecate Energy chairman David Tohir said: “With this partnership, Hecate Energy continues to position itself as a leading renewable energy developer in the United States. We are pleased to align ourselves with a major global energy company that is leading the transition to a multi-energy future.”
Recently, Repsol bolstered its renewable portfolio by breaking ground on the 860MW Delta II wind project in Spain.