SunZia: Record $11B fund for America's clean energy future

Hunter Armistead, CEO of Pattern Energy, emphasizes the significance of this achievement, stating, "Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon-free future."

The financing structure for this colossal project includes an integrated construction loan, a letter of credit facility, two separate term facilities, an operating phase letter of credit facility, an innovative tax equity term loan facility, and a holding company loan facility.

A consortium of major financial institutions, including BNP Paribas, Crédit Agricole, Wells Fargo Securities, and others, acted as Initial Coordinating Lead Arrangers and Joint Bookrunners, highlighting the widespread industry support for this venture.

Green loan principles and tax equity

Notably, the financings are structured as green loan facilities in alignment with the Green Loan Principles, underscoring the commitment to sustainable practices. Banco Santander and Santander Bank provided a $2.25 billion tax equity term loan facility, monetizing project tax credit attributes and emphasizing the diverse financial instruments mobilized for this project.

SunZia Wind, a 3,515 MW wind facility, is a pivotal element of this project and is currently the largest wind project in the Western Hemisphere. With construction underway across Torrance, Lincoln, and San Miguel Counties in New Mexico, the project aims to employ over 2,000 workers during its construction phase.

The transmission line's EPC Contractor is Quanta Infrastructure Services Group, and Hitachi Energy serves as the HVDC supplier, underlining the collaboration of industry leaders in bringing this project to fruition.

Bill Rogers, Managing Director of Sustainable Energies at CPP Investments, applauds the project, stating, "SunZia represents an important step forward in the global transition to renewable energy." This sentiment is echoed by Yakov Tsveig of Riverstone Holdings LLC, emphasizing the significance of SunZia in Pattern Energy's journey since its formation in 2009.

Turbine supply agreement and Vestas' milestone order

In a related development, Vestas, the wind turbine giant, secured a monumental order from Pattern Energy Group to supply 242 V163-4.5 MW turbines for SunZia Wind. This 1.1 gigawatts (GW) order, Vestas' largest to date in the U.S. market, underscores the project's scale and impact on the renewable energy landscape. Vestas aims to commence turbine delivery in Q1 2025, with final commissioning scheduled for H1 2026.

The SunZia project is a testament to the renewable energy sector's ability to secure substantial financing and execute complex, large-scale projects. With construction well underway, SunZia is set to play a pivotal role in advancing the world's energy transition, serving as a model for ambitious clean energy initiatives globally.