Solar and storage project developer and operator Primergy announced today that it has raised $588 million in debt financing commitments aimed at funding its 408 MW Texas-based Ash Creek solar project.

The company also announced the signing of a long-term power purchase agreement with Microsoft, covering the full capacity of the new solar plant.

Ty Daul, CEO of Primergy, said:

“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects… Our team is extremely grateful for our continued partnership with prominent clean energy project financiers to make this a reality and are proud to work with Microsoft on meeting its sustainability commitments.”

Currently under development in Penelope and Abbott in Hill County, Texas, the Ash Creek Solar project covers a 3,480 property site, and is anticipated to produce enough carbon-free energy to power around 90,000 homes annually. The project will also include a 300 MW battery energy storage system to enable the provision of consistent dispatchable energy. The project is anticipated to take 12-18 months to complete.

The new debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit, with the facilities led by MUFG Bank and SMBC as lead structuring arrangers, and a syndicate of coordinating lead arrangers (“CLAs”) including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.

Louise Pesce, Managing Director, Project Finance Americas at MUFG, said:

“We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio. We are committed to creating a sustainable future by financing solar projects that have a positive community impact, like Ash Creek Solar.”

The deal marks the latest in a series of large-scale renewable energy agreements by Microsoft, supporting the company’s clean energy and climate goals, including a recent 12 GW solar panel and services procurement agreement with clean energy company QCells.

In 2021, Microsoft launched a “100/100/0 clean energy goal,” with the company targeting having 100% of its electricity consumption, 100% percent of the time, matched by purchases from zero carbon energy sources by 2030, adding to its prior commitment to use 100% renewable energy in its buildings and datacenters globally by 2025. Microsoft has also committed to become carbon negative by 2030, and to cover 100% of its electricity consumption in its buildings and datacenters globally with renewable energy by 2025.