Advantage Capital, an impact investment firm, announced yesterday their commitment to invest $185 million, in Sabanci Renewables Inc., the American branch of Sabanci Holding. This funding will aid in the completion of the financing for Cutlass Solar II, a scale project with a capacity of 272 MWdc. The project is currently being constructed in Fort Bend County, located around 40 miles southwest of Houston. Once operational it will contribute to the growth of energy development in the Electric Reliability Council of Texas (ERCOT) which is recognized as one of the markets for renewable energy, in the United States.
Advantage Capital will provide the funding needed for Sabanci to finish the Cutlass Solar II project by utilizing Investment Tax Credits (ITCs). This tax equity investment ensures that construction can be completed successfully.
“This investment, in Sabanci Renewables is a match with Advantage Capitals dedication to supporting energy initiatives across the country. It will particularly bring about changes within the Fort Bend County community in Texas ” stated Tom Bitting, Principal at Advantage Capital. “We are excited to collaborate with Sabanci, a player, in the energy sector to bring this project online and create value for all involved parties.”
Scheduled Start of Operations for Cutlass Solar II
Cutlass solar II is scheduled to start operations in April 2024. It comprises of, than 500,000 solar panels spread across an area of over 1,000 acres. This vast solar farm will generate sustainable electricity meeting the power needs of over 80,000 households in Texas. Additionally this project will contribute significantly to the economy by creating job opportunities during its execution. Moreover it will address the concerns related to energy supply security during the scorching summer months, in the growing Houston region.
“We’re thrilled to join forces, with Advantage Capital for our energy venture, in the United States. It fills us with pride to showcase our ability to succeed in this market especially given the challenging circumstances ” said Ismail Bilgin, CEO of Sabanci Renewables.
Advantage Capital was represented by Allen & Overy and Husch Blackwell in this transformative Cutlass Solar II project transaction while Sabanci Renewables received counsel from Troutman Pepper and Duggins Wren Mann & Romero. Sabanci also had the assistance of Carbon Reduction Capital (CRC) previously known as CohnReznick Capital, as their advisor.
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