Eni acquires 49% of Falck Renewables’ US operating assets
CHANGCHUN, China,December 24. 2019 /PVTIME/ — Eni and Falck Renewables have signed a strategic agreement for the joint development of renewable energy projects in the United States. The agreement involves the creation of a venture owned 50% by Eni New Energy US Inc. (“ENE US”) and 50% by Falck Renewables North America Inc. (“FRNA”) for the development, construction and financing of new solar photovoltaics, wind onshore and energy storage projects. Under the terms of the agreement, FRNA will simultaneously sell ENE US 49% of its ownership interests in the plants currently in operation in the United States.
The deal enables the two partners to:
- establish a significant platform for the development of new projects from renewable sources in an evolved US market, which offers significant growth prospects.
- operate through a new company that will cover the phases of development, construction and financing of new projects combining Falck Renewables’ know-how in renewable assets together with Eni’s technological and financial capabilities.
- accelerate the growth of Eni and Falck Renewables in the US and help reach their respective goals in terms of installed capacity and green energy generation.
The venture1 will have shared governance and will be dedicated to develop at least 1 GW in projects by the end of 2023. ENE US and FRNA will have various options to acquire projects from the venture, either consolidated line-by-line by ENE US (100%) or by FRNA (100% or with a minority 49% stake for ENE US). Funding for the joint development company and its profits will be split equally between the owners.
The sale to ENE US of 49%2 of FRNA’s existing assets pertains to a 112.5 MW portfolio comprising five photovoltaic plants in operation in North Carolina and Massachusetts, one of which, Middleton (Massachusetts) has an energy storage facility of 6.6 MWh. These plants will continue to be operated, controlled and consolidated by FRNA, which will own 51% of them.
The total value paid by ENE US to FRNA will be approximately 70 million USD at closing, including a solar panel stock valued approximately 12.7 million USD, and this will be adjusted in line with market practice. Closing is subject to certain conditions precedent and is expected by the first quarter of 2020.
Luca Cosentino, Executive Vice President of Energy Solutions at Eni, commented: “For Eni, the agreement with Falck Renewables opens up a new, low-risk and highly fluid market in which we are aiming to grow very quickly. This partnership will benefit from the knowledge and renowned experience of Falck Renewables, enabling Eni to accelerate its plans to increase its renewable energy capacity and laying the foundations for achieving our decarbonization objectives.”
“We are excited to start working in a targeted way with Eni, which like us wants to contribute to the energy transition and be a key player in the renewables sector. We are really interested in bringing together the two companies’ capabilities and ambitions to create an agile and focused development company, with clear objectives in one of the world’s most dynamic and high-potential markets,” said Toni Volpe, CEO of Falck Renewables.