Infratil-backed Longroad Energy secures wind farm finance

By Rebecca Howard

July 15 (BusinessDesk) - US-based renewable energy developer Longroad Energy has closed financing for its 243 megawatt El Campo wind farm with the project due to be completed in 2020, says Infratil.

Longroad Energy is 40 percent owned by Infratil and 40 percent by the New Zealand Superannuation Fund, in partnership with the firm's management. The El Campo farm is the second of the 800 MW of development projects that Longroad Energy has targeted for financial close in 2019 and is located in Knox County, Texas.

According to the release, Longroad Energy is partnering with Danish pension funds PKA and PenSam - acting through their investment manager AIP - to construct the project, and will retain a 50 percent equity interest. It expects to achieve commercial operation by July next year.

Longroad will provide construction management, asset management, operations, and services to the project over a 20-year term.

The total cost of the project is an estimated US$335 million.

In April, Infratil said it had invested $154 million since it began investing in Longroad and has received $152 million of that capital back and that its share of Longroad was worth $128 million at March 31.

Infratil shares fell 0.4 percent to $4.72.

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