All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

Quinbrook Infrastructure Partners closed a $1.9 billion debt and tax equity financing deal with Primergy Solar for a solar-plus-storage project in Nevada, the companies announced this morning.

Why it matters: The two companies say the deal represents the "largest single-asset tax equity solar tax financing" in the U.S., for what they're also calling the "largest single project of its kind."  

The details: The "Gemini Project" outside Las Vegas will consist of 690 MWac/966 MWdc solar PV and 1,416 megawatt-hours of battery storage. 

The debt financing consists of $1.3 billion in credit facilities and $532 million in tax equity commitments.

The tax equity commitments were made by Truist bank and Bank of America.

The credit facilities include construction facilities led by KeyBanc Capital Markets, MUFG Bank, Bank of America and Norddeutsche Landesbank Girozentrale, New York Branch.

Quinbrook and Primergy arranged a $95 million mezzanine debt facility from Voya Investment Management. 

Of note: The project is aimed at replacing the coal-fired North Valmy Generating Station, set to retire in 2025.

The big picture: The megadeal comes amid a near-frenzy from investors who are scouring the markets for solar projects to invest in.

Solar is seen as a mature sector that offers steady returns, especially when they involve established developers or development platforms. That's attracting backing from mainstream lenders beyond the typical renewable-energy financiers.

Then again, founders and funders alike are warily watching for a potential expansion of solar tariffs, plus ongoing disruptions to supply chains.

What's next: Gemini is set to go online in late 2023, providing energy under a 25-year purchase agreement to NV Energy.

1 big thing: $1.9B mega solar+storage project

In this illustration, solar panels are designed to look like 100 dollar bills.

Anuvia, a Florida-based maker of bio-based fertilizers for commercial agriculture, raised $65 million in Series D funding at a $225 million valuation, the company tells Megan exclusively.

Why it's the BFD: Selling into Big Ag is big business, but Anuvia is targeting an industry that remains difficult for smaller companies and startups to break into, says Piva Capital managing partner Mark Gudiksen. 

Driving the news: Riverstone Holdings and Gudiksen's Piva Capital co-led the round, Anuvia CEO Amy Yoder tells Megan.

Riverstone managing director Cynthia Kueppers and Gudiksen will join Anuvia's board of directors.

New investors Morgan Stanley Investment Management and the Mittal Family Office LK Advisers Limited joined existing investor Pontifax Global Food and Agriculture Technology Fund in the round.

State of play: Commercially available nitrogen fertilizers are one of the largest sources of greenhouse gas emissions from global agricultural production.

Using organic food and animal waste instead of nitrogen fertilizers can cut the process's greenhouse gas emissions by nearly 50%, Yoder claims.

How it works: Anuvia takes old chemical fertilizer plants sitting dormant, retrofits the plants to produce its eco-friendly fertilizer mix, and ships it out to distributors that can deliver the final product to farmers.

Anuvia adds amino acids and other nutrients to the organic waste to create a mix that can help regenerate soil in addition to supporting crop yields.

The mix is a dry product for high-acreage crops like corn or soybeans, but Yoder says the company is working on a liquid fertilizer for specialty crops.

Anuvia is operating a 1.2 million ton capacity facility in Plant City, Florida, that it is leasing from The Mosaic Company. Mosaic previously used the plant to create phosphate-based fertilizers.

"It's the holy grail kind of thing in agriculture," Gudiksen says.

Zoom out: Anuvia is built to act just like a normal fertilizer with a smaller carbon footprint because farmers are often reluctant to take a chance on new products, Yoder says.

If a food producer is operating a farm for 30 years, that often means they only have 30 chances to get their calculations right since they plant crops in a small window once a year.

"It sells at the same price as normal fertilizer, so it doesn't cost the farmer any more to do the right thing," Yoder says.

Yes, but: Organic matter has its own carbon footprint, considering that all current or former living things are comprised of carbon, even when broken down and reused. 

Other forms of sustainable soil technology have often stuck to smaller farming operations to see what options work best at a highly localized scale in an attempt to come closer to carbon neutrality.

2. The BFD: Eco-friendly fertilizer valued at $225M

Illustration of a recycling symbol made out of shovels carrying dirt. 

Shell eyeing big buy in renewables: The oil major is reportedly nearing a $1.8b deal to purchase Sprng Energy, a renewable power producer in India.

Shell, along with Adani Group and Greenko, was said last month to be among the companies bidding for Sprng, which is owned by private equity firm Actis.

3. 🌡️ Temperature check

Illustration of an earth emoji combined with a sick face emoji.

GridMatrix has raised $3.5m in seed funding in a round co-led by 8VC and Cota Capital. Alumni Ventures Group, Intensity Ventures, the Y Startup Index and angel investors also participated. http://axios.link/Fg9m

Ardian has raised $5.25b for its latest infrastructure secondaries fund, Ardian Secondary Fund VIII Infrastructure. http://axios.link/N6F2

Tiger Infrastructure Partners has closed its third flagship fund, Tiger Infrastructure Partners Fund III, at a hard cap of $1.25b in equity capital commitments. Portfolio investments include Summit Carbon Solutions, Qwello, and Forsa Energy. http://axios.link/cuWF

Satori Capital launched Satori Environmental, a long/short equity strategy that is investing in securities affected by the global shift from fossil fuels to renewables. http://axios.link/y6fv

Fu-Gen, a Swedish renewable power producer, raised €320m from Israel’s Migdal Insurance, Menora Mivtachim Insurance and Arkin Group. http://axios.link/gzj2

Preem, the Swedish petroleum and biofuels company, signed an SEK 3b (~$310m) loan agreement with the Swedish Export Credit Corporation to fund the company’s switch to renewable fuels production. http://axios.link/YlcT

Econergy Renewable Energy is reportedly partnering with Terna Energy to develop two solar plants — 240 megawatts and 220 megawatts — in Greece. Econergy will acquire 49% of the share capital in Terna Energy. The estimated total investment in the projects is about €265m (~$285m). http://axios.link/0m6U

Monterey Capital Acquisition, a clean-energy transition SPAC, filed for a $100m IPO. http://axios.link/QUpS

The U.S. Department of Energy has granted $2.93m to AirCapture and OCOchem to design and engineer an integrated carbon dioxide capture and conversion plant co-located at Nutrien's Kennewick Fertilizer Operations plant in Kennewick, Washington. http://axios.link/SzZr

NuScale Power LLC and Doosan Enerbility Co., Ltd. signed an agreement for Doosan to begin producing forging materials for NuScale’s small modular reactors. http://axios.link/75vY

First Solar, Inc. (Nasdaq: FSLR) has agreed to provide Leeward Renewable Energy with 1 gigawatt of solar modules under the terms of a multi-year agreement. http://axios.link/izot

Motorcar Parts of America, Inc. (Nasdaq: MPAA) announced that its subsidiary D&V Electronics has received an order to supply an electric motor emulator to one of China’s largest automotive companies. http://axios.link/TpA8

Aker Horizons ASA (OSE: AKH), through its wholly-owned subsidiary Aker Narvik AS, today announced an agreement to establish a joint venture with Nordkraft AS to develop less carbon-intensive sites for industry in Norway. http://axios.link/NLLB

NexGen Energy Ltd. (NYSE: NXE) signed an impact benefit agreement with the Clearwater River Dene Nation in Canada for the Rook I uranium project. http://axios.link/UDWi

Tree Energy Solutions announced an open season at its Wilhelmshaven regasification terminal in Germany to accelerate liquified natural gas (LNG) imports into Europe. http://axios.link/stuZ

4. Hot deals

Rich Mack and Bill Buckner are stepping down from Anuvia's board of directors, and Twemlow Group managing director Lynn White will become Anuvia’s board chairman, the company tells Megan.

Daniel Wong has joined Stonepeak as a senior managing director and head of Europe. He will also join the firm’s executive committee. Wong was previously global co-head of Macquarie Capital. http://axios.link/BZqU3

5. It's Personnel

Happy Monday and welcome back to Climate Deals!

💻 Situational awareness: Megan is moderating a virtual panel on the future of climate tech with Silicon Valley Bank tomorrow at 1pm ET/10am PT. RSVP to join: https://bit.svb.com/3M3FU3l

🐶 Megan's younger dog went to boarding a few days before the older one, and the older one spent all weekend looking for her. Normally he would never admit that he likes the younger one, but now we know the truth.

🦀 Alan and family's Farewell D.C. Tour continued this weekend with a visit to see friends in Baltimore. (Did that law school paper get finished, you ask? Ask again tomorrow.)

Thanks for reading Climate Deals! Please share with your friends, family, bulk Old Bay wholesaler and fellow agriculture nerds.

April 25, 2022

1 big thing: $1.9B mega solar+storage project