7X Energy, Inc. has partnered with Nestlé to be the sole tax equity investor in its 250 megawatt Taygete I energy project in Pecos County, Texas. 7X has now successfully commissioned 1,350 megawatts of solar projects that are either operational or under construction in Texas. The projects combined represent a capital injection of over $ 1.5 billion. Construction on Taygete I has been completed and the project is in the final phase of energy supply. Full commercial operation is expected in early 2021.
Deal details: 7X Energy, the project owner, will also be the asset manager. A portion of the energy generated from the Taygete I solar project is being sold to J. Aron & Company LLC., A subsidiary of Goldman Sachs, under a long-term security agreement. The other pantograph is an S&P rated company. CIT was the coordinating lead arranger, and other lenders included Deutsche Bank, National Bank of Canada, CIBC, Rabobank, and Amalgamated Bank. Marathon Capital acted as exclusive financial advisor to Nestlé on the transaction.
“Taygete I is an exciting achievement for 7X, which is now an independent power company,” said Clay Butler, President and CEO of 7X Energy. “Our expansion into property and asset management is the clear evolution for 7X as we are committed to the highest standards of design and construction while aggressively managing end-to-end costs for better access to more competitive cleaner energy to enable. “
Nestlé is the sole tax-sharing investor in the Taygete I project. This investment is the company’s largest direct investment (by capacity) in a renewable energy project to date. In addition to its tax equity stake, Nestlé will acquire 100% of the renewable electricity attributes generated by the project’s power generation, which are estimated at 750,000 megawatt hours per year for 15 years. This renewable energy will help the company cut carbon emissions while preparing household favorites like DiGiorno pizza, Sweet Earth meals, Purina Pro Plan pet food, and Tidy Cats cat litter.
“Nestlé’s investment in Taygete I is an important milestone on our way to net zero by 2050. This is an aggressive target. To achieve this, we are innovating across the company, from the ingredients we use to the packaging in which our food is kept and drinks safely, how we make and transport our products, ”said Jim Wells, Nestlé’s chief supply chain officer UNITED STATES. “We are proud that our investment will increase the availability of renewable energy and provide the US grid with enough solar power to power 90,000 households annually. With this step, we are on our way to achieving a 35% reduction in greenhouse gas emissions per ton of product in our US manufacturing facilities by the end of 2020. “
System details: The project covered around 2,000 acres and included NextTracker components, Freesun power electronic HEM inverters, and over 856,000 Jinko modules. Swinerton Renewable Energy built the Taygete I solar project under an engineering, procurement and construction contract with 7X Energy. The Taygete I solar project created over 300 jobs during the construction phase. During the term of the plant, the project will generate property tax revenues in the double-digit millions for the district.
“7X has been a great community partner in the development and construction of Taygete I. The economic benefits the project has brought to the region confirm the value of utility-scale solar energy,” said Honorable Judge Joe Shuster, Pecos County . “This county has been a leader in power generation such as # 14 in oil and gas exploration, # 5 in wind power, and # 1 in solar power in the state of Texas. The Taygete I project shows how oil, gas and solar can coexist, and we are proud to be part of the solar boom in Texas! “