Barclays and Lightsource bp announced today that they have committed to a $140 million tax equity deal which will finance the construction of the Prairie Ronde 180MWdc solar project in St. Landry Parish, Louisiana.
The deal is one of the first to be led by Barclays' new Sustainable Project Finance team, working in partnership with the bank's Energy Transition Group, which was formed last month to provide strategic advice to clients as they explore energy transition opportunities. Barclays acted as the sole external equity investor on the $140 million tax equity deal, which will contribute towards the bank's target to facilitate $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030.
Lightsource bp plans to build, own, and operate the solar farm, which will create 250 new jobs during construction, supporting local workers and domestic supply chains. Commercial operation of the project is expected to begin in late 2024.
Once completed the project holds significant benefits for the St. Landry Parish community. Lightsource bp has committed to dedicating $250,000 in funds to philanthropic activities and charity donations to local St. Landry Parish organizations.
They have also committed to increasing biodiversity on the land, working in partnership with local experts to grow a variety of beneficial plants under and around the solar panels.
Lightsource bp has already agreed a power purchase deal with McDonald's Corporation. The amount of solar energy the project will generate is enough to power over 600 McDonald's restaurants with renewable electricity annually. It's estimated that the project will abate 231,800 metric tons of carbon emissions each year.
Jessie Bellard, St. Landry Parish President, said: 'Lightsource bp's investment in St. Landry Parish represents a new day for our community and our schools. Their funding boosts job-creating development projects, stronger infrastructure, and better education for our children. With this support, St. Landry Parish is poised to become a regional leader in innovation and opportunity for all.'
Emilie Wangerman, Head of USA, Chief Operating Officer (interim) at Lightsource bp, said: 'As members of the St. Landry community, we look forward to delivering affordable clean energy while continuing to expand our investment in Louisiana to help power the state's low carbon, independent energy future. What's really exciting is commitments like Barclays to sustainable and energy transition financing are also helping boost local economies. The Prairie Ronde project is expected to provide more than $20 million tax revenue to St. Landry Parish public services such as local school systems over the life of the project.'
James Edmonds, Barclays Global Head of Sustainable Project Finance, said: 'We're proud to have delivered this tax equity commitment which will provide huge benefits to the local community in St. Landry Parish. Barclays is fully committed to a just transition and working with key clients such as Lightsource bp to evaluate all economic and societal opportunities as we scale climate finance. Mobilizing strategic capital is critical for the energy transition and ensures Barclays can make a demonstrable difference in accelerating the scale up of clean energy development projects.'
About Barclays
Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities. For further information about Barclays, please visit our website home.barclays
About Lightsource bp
Lightsource bp is a global leader in the development and management of solar energy and energy storage. For more than a decade, Lightsource bp has delivered affordable, safe and sustainable energy to businesses and communities around the world. Their team includes more than 1,200 industry experts, working in 19 global regions, providing full scope development for projects, from initial site selection, financing and permitting to long-term management of solar projects and energy sales to their customers. Lightsource bp in the U.S. is headquartered in San Francisco with development offices in Denver, Austin and Philadelphia. Since 2019, the team has brought into operation or initiated construction on more than 3.2 gigawatts of U.S solar projects across 11 states in America with capital costs of nearly $4 billion. Lightsource and bp first entered into partnership in 2017. Most recently, bp has announced the intention to fully acquire Lightsource bp, which currently operates as a 50/50 joint venture with bp. For more information visit www.lightsourcebp.com/us .
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