Ørsted has announced that it is divesting a 50% equity stake in three US onshore renewable energy projects. The projects will be sold to Energy Capital Partners (ECP). ECP is among the largest investors in the energy transition space.

Two solar projects in Texas will be part of the deal: Mockingbird Solar (468 MW) and Sparta Solar (250 MW). The other project included in the agreement is the Eleven Mile Solar Center in Arizona. The solar project in Arizona has both solar and battery storage.

Also read: Ørsted Commissions 300 MW Solar Farm with Battery Storage in Arizona

Transaction Value and Project Details

The transaction value is $572 million. Ørsted maintains 50% equity shares in the three projects. The firm shall manage its three projects during their term of operation.

Ørsted forecasts the financial close of the transaction to be more than two reporting periods. The two periods are Q4 2024 and Q1 2025.  The deal is expected to be closed subject to certain conditions.

These projects, expected to begin operations in 2024, have already secured tax equity partnerships and power purchase agreements. Ørsted continues with its commitment to the US market, using the cash generated from divestment to advance toward long-term goals.

Continued Partnership with Energy Capital Partners

This divestment is another important milestone within Ørsted’s current partnership with Energy Capital Partners. Earlier in 2022, ECP acquired 50% of three wind farms as well as one solar farm with Ørsted’s first-ever farm-down in the onshore US market. Building on this, Ørsted further cements its relationship with ECP in this latest deal, driving the growth of its US Renewable Energy portfolio.

Ørsted’s US Renewable Energy Portfolio

Once operational, the solar projects will have brought Ørsted’s US onshore wind, solar, and battery storage pipeline to over 6 GW. This is considering projects under construction and in operation. This cements Ørsted’s growth in the US energy transition as part of its long-term sustainability goals.

Statement from Ørsted’s Head of Commercial, Region Americas

James Giamarino, Head of Commercial in Region Americas at Ørsted, said, “These transactions reflect our close engagement with a range of commercial partners, including our tax equity and transferability partners, which are all key to the growth of Ørsted’s US onshore portfolio.”

He mentioned that the company will use recycled capital as Ørsted makes further progress on its growth ambitions. This capital will help continue the development of projects that create long-term value for their partners.

With the divestment of these solar projects, Ørsted shows its commitment to growth in the US renewable energy sector. By forming strategic partnerships with investors like ECP, Ørsted advances its sustainability goals. The company also recycles capital from successful projects, which helps fund future growth.

Frontier has stated that it has entered offtake agreements with CO280 and CREW Carbon. As part of the agreements, Frontier will be investing $80 million in CO2 removal solutions. This investment into CO2 removal solutions falls in line with the strategy by Frontier to accelerate carbon removal technology development.

CO280’s Carbon Removal Project

CO280 will get $48 million in exchange for the removal of 224,500 tons of CO2 between 2028 and 2030. The company focuses on upgrading pulp and paper mills to capture CO2 emissions emitted as by-products of pulp processing activities.

The company uses a carbon removal mechanism that collects biogenic CO2 from recovery boilers at pulp mills. This CO2 is then transported and permanently stored in Class VI wells, ensuring long-term carbon sequestration.

Also read: Frontier Carbon Solutions Launches SCS Hub to Tackle Industrial Emissions

CREW Carbon’s Role in CO2 Removal

CREW Carbon will secure $32.1 million for the removal of 71,878 tons of CO2 between 2025 and 2030. This part of the deal is similar to the agreement with CO280. CREW Carbon partners with wastewater treatment plants to deploy carbon removal systems.

The company adds alkaline minerals to the wastewater treatment tanks, in which microbes produce biogenic CO2. This process converts the CO2 into stable aqueous bicarbonate ions, either safely released into bodies of water or stored underground.

Benefits of Frontier’s Investment

This partnership highlights Frontier’s commitment to supporting scalable carbon removal technologies. By investing in solutions like CREW Carbon and CO280, Frontier is helping stimulate the growth of carbon reduction methods with the potential for rapid expansion.

CREW Carbon installs a monitoring system at treatment plants to measure the amount of carbon dioxide captured in the process. The precision of this system allows for accurate quantification and reporting of carbon removal outcomes.

The Frontier Coalition

Frontier, founded by companies such as Stripe, Google, Shopify, and McKinsey Sustainability, has expanded to include several industry giants. Autodesk, H&M Group, Workday, and Salesforce are also involved in this ambitious investment initiative.

Other partners, including Aledade, Canva, Match Group, Samsara, SKIMS, Skyscanner, Wise, and Zendesk, are making their purchases through Frontier’s partnership with Watershed.

Looking Ahead

With this investment, Frontier aims to catalyze the scaling of carbon removal solutions. The coalition hopes to drive more companies to adopt technologies that can quickly tackle carbon emissions. This move is essential for addressing the climate crisis and achieving ambitious net-zero goals.