The Mammoth Solar Project has secured a crucial injection of funding to the tune of US392m. The funds were secured by Israel based developer, Doral Renewables LLC . The funds were secured through the Deutsche Bank AG, New York Branch.
The financial package comprises of a tax equity bridge loan worth $170 million, and a construction-to-term loan facility for $157 million. The package in addition includes a letter of credit facility worth $65 million. Doral also signed a tax equity commitment transaction worth $157 million for the project. Marathon Capital Markets LLC stood in as Doral’s exclusive financial advisor for the latter tax equity commitment.
Mammoth Solar project fact sheet
- Cost of Mammoth Solar project: US$1.5 Billion
- No of phases: 3 Phases
- No of solar panels: 2.85 million solar panels
- Power generation: 1GW
- Area covered: 13000 acres
Remarks on this milestone
According to Doral’s Chief Financial Officer, Evan Speece, the funds will enable the Mammoth North Solar project to commence operations in 2023, as planned. Speece further said that the company was looking forward working with its financial partners to provide clean energy from Mammoth and other future solar projects to customers across the U.S
The Deutsche Bank’s head of Infrastructure & Energy Financing and Structuring, also commented on this milestone. He said that the bank was excited about partnering with Doral, and providing such a world class development team with support on a Solar project. This he said shows Deutsche Bank’s commitment to Sustainable Financing.
Mammoth North Solar project overview
The 400MW Mammoth North Solar project involves the installation of a ground-mounted, single-axis photovoltaic system. The electricity generated, in accordance with Doral’s Renewable Energy Certificate (REC), will be sold to AEP Energy Partners Inc. The purchase will be based on the long term purchase agreement signed between Doral and AEP Energy. Once the Mammoth Solar project is completed, the power supply would be enough for up to 75,000 homes per year.
The Mammoth North Solar project is the initial phase of Doral’s $1.5 billion solar farm project. The latter is being developed on a 4,500 acre-site situated within the northwestern region of PJM (Pennsylvania, New Jersey, and Maryland). Other Solar projects are also being developed around the neighboring Mammoth Central and Mammoth South regions. Altogether the projects will bring Doral’s energy capacity for the market to 1.3 GW AC.
Reported earlier
October 2021
Construction begun in October on what will be the largest solar energy farm in the US when finished, spanning two northern Indiana counties. The Mammoth Solar project will see solar panels installed in Starke and Pulaski counties, generating power. The project is a partnership between Indiana and Doral Renewables an Israeli company.
Doral Renewables will sell electricity to American Electric Power as part of a long-term deal to enhance the utility’s renewable energy capacity in Columbus, Ohio. Doral Renewables executives joined Indiana Governor Eric Holcomb and local authorities in a groundbreaking ceremony in October 2021 for the project.
Mammoth Solar project Phase 1
According to reports, the first phase of the solar farm will be operational by mid-2023 and will produce 400 megawatts of electricity, enough to power 75,000 households. Construction on further sections of the farm, which will eventually generate 1.65 gigawatts of energy when it comes online in 2024, is set to begin next year.
Proposals for big solar farms have been met with resistance in some areas due to the loss of farmland. Doral Renewables, an Israeli firm, invited the Israeli Ambassador to the United States, Gilad Erdan, to the groundbreaking event when Holcomb visited Israel in May to show support for the country after the 11-day war between Israel and Gaza’s militant Hamas rulers.
“I’ve never seen anything like this project in my life.” “The energy that we gather here in Starke County will benefit people all throughout the county,” stated Starke County Commissioner Mark Gourley. A total of 500 construction jobs are projected to be created throughout the course of the three-phase project.
According to the Indiana Economic Development Corporation, the state is working to finalize incentive-based tax credits if 50 permanent full-time employment are created by the end of 2023. “To think that this is the largest solar farm in our country being led right here at home, this is an incredibly momentous day, and I don’t want to lose sight of how grateful we are,” Holcomb said.
Developer of the Mammoth Solar Project
Doral Renewable Energy Resources Group is an Israeli Company that specializes in renewable energy and environmental infrastructure developer.
The company is also involved in other solar projects in Israel and globally. In Italy it is developing the Mazzarino Solar farm and Hadrei Shean in Israel amongst other projects in the renewable energy sector
Mammoth Solar project fact sheet
- Cost of project: US$1.5 Billion
- No of phases: 3 Phases
- No of solar panels: 2.85 million solar panels
- Power generation: 1GW
- Area covered: 13000 acres
Benefits and controversy of the Mammoth Solar project
The project will save over 1 billion gallons of irrigation since over 13000 acres of land will not be farmed any more and it will also save 2000 tons of carbon emission annually.
Those opposed to the project feel that it will be removing a substantial amount of food producing land from farming and both fauna will be affected in the region due to clearing of any bush and tree covering.
Oct 2021
Mammoth Solar Project which when completed will be the largest solar farm in the USA has gotten a commitment by Migdal Insurance, Israel’s largest insurance company to invest US$ 75M into the 300-MW/260-MW DC second phase of the Mammoth Solar Project in exchange for a 22.5% ownership stake in the project, which is dubbed Mammoth South project or the Mammoth Solar ll.
This new agreement will result in Migdal increasing its direct investment in the Mammoth Solar project to up to US$ 175M after investing US$ 100M in the first phase or rather Mammoth North project that is also known as the Mammoth Solar l, earlier in 2021 for a 20% stake.
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The construction of Mammoth Solar 1 commenced officially in October 2021, and the facility is expected to reach commercial operation by the second quarter of 2023.
“Migdal increasing its investment is a direct expression of the trust offered by Israel’s institutional entities in the renewable energy sector, and in Doral Renewables LLC in particular,” says Yaki Noyman, CEO of the Doral Group adding that, “We have chosen partners that are not only interested in generating returns from its investment, but also in its impact on the public and the environment.”
Investment in Mammoth Solar
This agreement, in addition to increasing Migdal Insurances direct investment in the Mammoth Solar project, also increases its overall investment in Doral (Formerly Global Energy Generation LLC), including capital and credit to an amount of up to US$ 415M.
Speaking on the decision, Erez Migdali, the deputy CIO and head of private assets at Migdal Insurance said that the company is delighted to deepen its investment in Doral LLC’s activities and that this significant, growing partnership is an indication of Migdal Insurances trust in the renewables industry, and in Doral in particular.
“This investment is in correlation with our ongoing ESG policy, in which we have developed an investment framework of over US$ 947M in net positive investments, annually. I have no doubts that this deal, is the first among many new investments we intend to promote in within the year,” concluded Migdali.
January 2022
Indiana Governor has expressed confidence in the upcoming largest solar farm in the USA aptly named Mammoth Solar Project at his state of the state address recently. The projecton completion will generate 1GW of electricity.