Cypress Creek Renewables ups Texas solar stake with 162-MW Wagyu venture

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Cypress Creek Renewables ups Texas solar stake with 162-MW Wagyu project

The 162 MW Wagyu solar PV project in Brazoria County, Texas is now providing power to the grid. The project near Houston belongs to global renewable energy investor Cubico Sustainable Investments and was developed by Cypress Creek Renewables.

The project setup was carried out by Renewable Energy Systems. In addition to acting as the original project developer, Cypress Creek provides day-to-day operations, maintenance and asset management for Wagyu.

Wagyu has the unique combination of a 15-year corporate PPA from Starbucks and 12-year physical coverage with BP. It is the third and final project to operate within a portfolio that has received the IJGlobal Award as the best renewable energy portfolio deal of the year for North America.

“The Wagyu project is particularly noteworthy as one of the growing solar projects in Texas that is intended to be completed as part of a hedging rather than an addition to a power purchase agreement,” IJGlobal wrote. “The trader risk was reduced through the mutual collateralisation of the indebted back debts in all three projects and through the inclusion of a follow-up account to fulfill the compensation obligations as part of the energy protection. Since the hedge provider did not provide a tracking account, this feature had to be provided by the lenders, a very innovative step. “

Cypress Creek worked with Cubico on the tax share and debt financing for the project. The tax capital was provided by the US Bank, while the project finance debt was provided by HSBC, NORD / LB and Rabobank.

“Wagyu is Cypress Creek’s largest project to date and our 21st project in Texas to reach commercial operations. This underscores our team’s vast experience in developing, building and financing projects in Texas, ”said Sarah Slusser, CEO of Cypress Creek. “The sophistication and complexity of the business structure provided our finance team with an excellent opportunity to be creative. The entire Cypress Creek team is excited to work with Cubico on valuable projects that will benefit communities and create jobs, clean energy and a tax base for the future. “

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