Italy's ERG enters US renewable energy market with $270 mln deal

Erg SA

21/12/2023 07:12

MILAN, Dec 21 (Reuters) - Energy group ERG  ERG.MI  will
enter the U.S. renewable energy market after it signed a deal
for a strategic partnership with Apex Clean Energy Holdings, the
Italian firm said on Thursday.
    The deal involves setting up a U.S.-based holding company
that will encompass a wind farm and a solar plant, both set up
recently, with a total capacity of 317 megawatts. 
    ERG will buy 75% of the new holding company for $270
million, while Apex will hold the remaining 25%. The deal is
expected to be completed by the first half of next year.
    The plants, located in the states of Iowa and Illinois
respectively, are estimated to generate around 1 terawatt hours
(TWh), the firm said in a statement.
    The two assets benefit from tax equity investments with
market-leading counterparts and will be debt-free at closing,
ERG said, adding it expects a steady revenue stream from the
projects via long-term power purchase agreements. 
    Rothschild & Co acted as financial advisor to the
transaction. 

 (Reporting by Federico Maccioni, editing by Gianluca Semeraro
and Janane Venkatraman)
 ((Federico.maccioni@thomsonreuters.com; +39 3420768883;))