Posted on August 18, 2020
Alternative investment manager Apollo has made a structured investment in the US-based offshore wind developer – US Wind Inc.
Certain funds managed by Apollo Global Management’s affiliates have committed to invest, through convertible debt and equity, up to $ 265 million to acquire an equity stake in US Wind and fund development and construction costs associated with a major offshore wind energy project off the coast of Maryland.
The Maryland-based US Wind controls the Maryland Wind Energy Area under a Bureau of Ocean Energy Management (BOEM) lease of approximately 80,000 acres located ten to thirty miles off the state’s coast, an area that is sufficient to install an estimated 1.3 GW of renewable power generation.
Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, said: “US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy. For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the Firm’s strong commitment to sustainability.”
The first phase of the project will have a capacity of 270 MW. Anticipated to come online in early 2024, the project has a 25+ year useful life and is expected to create thousands of jobs, Apollo said.
“We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing development of our offshore wind projects,” said Riccardo Toto, President of US Wind.
“Apollo is a creative and dynamic partner, with global expertise, and together we believe we can make a positive impact on the energy transition in the United States.”
US Wind is majority-owned by Renexia SpA, a subsidiary of Toto Holding SpA
Source: offshore-energy.biz
