Insights

Quinbrook Closes UK’s Largest Solar PV + Battery Storage Project Financing for Cleve Hill Solar Park

DETAILS

- Quinbrook announced the closure of GBP 238.5 million financing for Cleve Hill Solar Park, the UK's largest solar and battery storage project. - The project includes a 373 MW solar and 150 MW battery energy storage system in Kent, expected to commence operations in 2025. - Financing consists of a GBP 218.5 million term loan and a GBP 20 million VAT facility provided by Lloyds and NatWest. - This financing is the largest of its kind for a solar and battery storage project in the UK and was arranged in two tranches. - Cleve Hill is significant for future large-scale projects aiming to support the UK's decarbonisation goals and create local job opportunities. - Revenue contracts secured for the project underline the financing, including a major government contract and an agreement with Tesco PLC for 65% of solar generation. - The project also has a 15-year Capacity Market Agreement for the battery energy storage system to ensure power availability during peak demand. - Total contracted revenues for the project exceed GBP 480 million, enhancing grid reliability and economic growth. - The project is expected to reduce carbon emissions by more than 142,000 tonnes in its first year and provide a net gain of over 67% in biodiversity. - Cleve Hill is anticipated to create over 2,500 direct and indirect jobs and generate over GBP 114 million in local economic benefits. - Quinbrook's leadership emphasized the importance of strategic investments in enhancing national energy infrastructure.

COMPANIES

Quinbrook Infrastructure Partners, Cleve Hill Solar Park, Lloyds, NatWest, Tesco PLC, Norton Rose Fulbright

TAGS

Solar

JetBlue Marks First Regular Supply of Sustainable Aviation Fuel (SAF) for Commercial Air Travel in New York

DETAILS

- JetBlue and its fuel partners have marked the first regular supply of sustainable aviation fuel for commercial air travel in New York at John F. Kennedy International Airport. - This supply is part of a 12-month agreement with World Fuel Services for at least 1 million gallons of neat sustainable aviation fuel from Valero Marketing and Supply Company. - JetBlue’s sustainable aviation fuel supply is supported by corporate partners who help cover the cost premium over traditional jet fuel. - An additional 4 million gallons of neat sustainable aviation fuel is possible under the terms of the deal with the backing of corporate partners. - JetBlue's chief financial officer highlighted the importance of incorporating sustainable aviation fuel into their flights to help decarbonize the aviation industry. - The fuel is produced by Diamond Green Diesel LLC, blended with conventional jet fuel, and is delivered through existing infrastructure to be used by JetBlue at JFK. - Blended sustainable aviation fuel can lower lifecycle greenhouse gas emissions by approximately 80% compared to conventional jet fuel. - World Fuel Services aims to enhance the supply network for sustainable aviation fuel on the U.S. East Coast through this collaboration. - The delivery of sustainable aviation fuel in New York was explored in a 2021 study by the Port Authority and the National Renewable Energy Lab. - The successful delivery of sustainable aviation fuel has already been demonstrated at LaGuardia Airport and through a transatlantic flight fueled by sustainable aviation fuel at JFK. - Port Authority leadership expressed pride in collaborating with JetBlue to promote sustainable air travel. - The Port Authority is committed to achieving net-zero emissions by 2050 and encourages partnerships to advance sustainability goals. - Expanding the sustainable aviation fuel market requires public and private collaboration along with federal and state incentives. - JetBlue has doubled its sustainable aviation fuel procurement year-over-year since 2020 and has other sustainability initiatives like improved aircraft efficiency. - JetBlue is known for low fares and exceptional service, operating flights to over 100 destinations.

COMPANIES

JetBlue, World Fuel Services, World Kinect, Valero Marketing and Supply Company, Valero Energy Corporation, Diamond Green Diesel LLC, Darling Ingredients Inc., Port Authority of New York and New Jersey

TAGS

SAF

Lithium Americas Announces $250 Million Strategic Investment from Orion Resource Partners for Thacker Pass

DETAILS

- Lithium Americas announced a strategic investment of $250 million from Orion Resource Partners for the Thacker Pass lithium project in Nevada. - The investment will enable fully funded status for the development and construction of Phase 1 of Thacker Pass, targeting completion by late 2027. - Orion will purchase senior unsecured convertible notes totaling $195 million and will enter into a Production Payment Agreement worth $25 million. - Additional funding of $30 million may be provided by Orion within two years upon request from Lithium Americas. - The investment will close the week of March 10, 2025, subject to closing conditions. - This partnership is expected to strengthen relationships with General Motors and the U.S. Department of Energy. - Orion has agreed to consider supporting up to $500 million in financing for Phase 2 of Thacker Pass. - Orion's commitment underscores the strategic importance of developing a domestic supply chain for critical minerals. - The initial investment is expected to meet all requirements from the U.S. Department of Energy and General Motors under a $2.26 billion loan. - Lithium Americas anticipates making an affirmative final investment decision for Phase 1 concurrently with the closing of the Orion investment. - The engineering contractor for the project was issued full notice to proceed in late 2024 to manage project risk. - Orion's investment will cover all remaining equity capital funding needs under the DOE loan. - The Notes from Orion will mature in 2030 and bear an interest rate of 9.875%. - Payments made under the Production Payment Agreement will be based on lithium processed and gross revenue. - Payments include a fixed rate of $128 per tonne of lithium processed each year for 72 quarters post-production. - Variable payments of 0.96% of total gross revenue are also included, subject to adjustments. - Orion will have oversight rights through appointed independent consultants to monitor project development. - The completion of Thacker Pass will create approximately 2,000 direct jobs over a three-year construction period. - Lithium Americas is focused on responsibly developing the largest known lithium resource in the world at Thacker Pass.

COMPANIES

Lithium Americas Corp., Orion Resource Partners LP, General Motors, U.S. Department of Energy, Bechtel, Goldman Sachs & Co. LLC, Evercore Group L.L.C., Vinson & Elkins LLP, Cassels Brock & Blackwell LLP, Torys LLP, Davis Graham & Stubbs LLP

TAGS

lithium

Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2024 Financial Results, Provides Growth Outlook for 2025 and Announces Refinancing of Badlands Preferred Equity

DETAILS

- Targa Resources Corp. reported fourth quarter net income of $351 million for 2024, up from $299.6 million in 2023. - Full year 2024 net income was $1.312 billion, down from $1.346 billion in 2023. - Fourth quarter adjusted EBITDA was $1.122 billion compared to $959.9 million in the same quarter of 2023. - Full year adjusted EBITDA reached a record $4.142 billion, a 17% increase from 2023. - Targa also achieved record volumes in its Permian, NGL transportation, fractionation, and LPG export segments for 2024. - The company repurchased $755 million of common shares in 2024, marking a record for share repurchases. - Targa completed its new 275 MMcf/d Greenwood II plant and a 120 MBbl/d Train 10 fractionator in Mont Belvieu during the fourth quarter. - Recently, Targa began operations at its 275 MMcf/d Bull Moose plant and 800 MMcf/d front-end treater in Permian Delaware. - Targa announced a new expansion of its Grand Prix NGL Pipeline in the intra-Delaware Basin. - The company plans to increase its LPG export capabilities at Galena Park Marine Terminal to about 19 MMBbl/month. - Estimated net capital expenditures for 2025 are between $2.6 billion and $2.8 billion. - Targa announced a refinancing of preferred equity in Targa Badlands LLC for $1.8 billion. - The company expects full year 2025 adjusted EBITDA to range from $4.65 billion to $4.85 billion, reflecting a 15% increase over 2024. - Targa declared a quarterly cash dividend of $0.75 per common share for the fourth quarter of 2024. - The total cash dividends paid were approximately $164 million to record holders as of January 31, 2025. - The company aims to recommend an annual common dividend of $4.00 per share for 2025 starting in May. - Targa repurchased over 5.9 million shares of common stock throughout 2024 at an average price of $127.20. - Total consolidated debt as of December 31, 2024, was approximately $14.175 billion. - Total consolidated liquidity at the same date was around $2 billion. - In February 2025, Targa entered a new $3.5 billion revolving credit facility. - The refinancing of Targa Badlands will likely result in significant cash savings and is expected to close in the first quarter of 2025. - Construction continues on several new facilities and expansions in response to increasing production needs. - Key expansions expected to commence operations between 2026 and 2027 include Delaware Express, Train 12, and GPMT LPG Export Expansion. - Targa's operational and financial forecasts for 2025 are based on certain expected average commodity prices.

COMPANIES

Targa Resources Corp., Targa Badlands, Blackstone

TAGS

oil and gas

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