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Barclays and Lightsource bp announced 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.”
Related Article: Barclays Revises Climate Policy to Strengthen Support for Sustainable Energy Transition
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.”