Renewables developer and independent power producer Cypress Creek announced that it has reached financial close and started construction on its Hanson Solar project in Coleman County, Texas.
The launch of the new 505 MW renewable energy project follows a power purchase agreement (PPA) between Cypress Creek and Facebook, Instagram, and WhatsApp owner Meta earlier this year. The new facility will deliver electricity to the ERCOT grid under the PPA, with Meta purchasing environmental attributes to support its clean energy commitments.
Meta has set a target to reach net-zero emissions across its value chain by 2030. The company achieved its goal to meet 100% of its operational energy needs with renewable sources in 2020, and recently said that it anticipates adding 9.8 GW of renewable energy to local grids in the U.S. by the end of 2025.
Sarah Slusser, CEO of Cypress Creek Renewables, said:
“Securing financing for Hanson Solar marks another important milestone as we expand our investment in Texas and continue partnering with customers like Meta. Projects like Hanson Solar go a long way to meeting the near-term need for reliable, affordable power that supports economic growth across the country.”
The financial close included a combination of preferred equity and debt financing, with debt facilities provided by MUFG and SMBC, and a preferred equity commitment provided by funds managed by a $350 billion AUM global credit asset manager.
Takaki Sakai, Managing Director at MUFG Bank, said:
“MUFG is pleased to provide debt financing for the Hanson Solar project, a significant step forward in expanding renewable energy capacity across Texas.”
