Italian oil, gas, and energy major Eni S.p.A and compatriot Falck Renewables S.p.A. an international developer, owner, and operator of renewable energy projects have signed a strategic agreement for the joint development of renewable energy projects in the United States (US). The venture will be dedicated to developing at least 1 GW in projects by the end of 2023.
Falck Renewables develops, designs, builds and manages power production plants utilizing wind, solar, waste-to-energy (WtE) and biomass technologies and has operations and projects under development in Italy, UK, Spain, Sweden, Norway, France, and the United States (US). In the latter, Falck Renewables North America (FRNA) currently has five solar PV projects operating
According to a joint statement, the agreement involves the creation of a venture owned 50 percent by Eni New Energy US Inc., (ENE US) and 50 percent by Falck Renewables North America Inc. (FRNA) for the development, construction and financing of new solar photovoltaics, wind onshore and energy storage projects. Under the terms of the agreement, FRNA will simultaneously sell ENE US 49 percent of its ownership interests in the plants currently in operation in the US.
The deal enables the two partners to:
- establish a significant platform for the development of new projects from renewable sources in an evolved US market, which offers significant growth prospects;
- operate through a new company that will cover the phases of development, construction, and financing of new projects combining Falck Renewables’ know-how in renewable assets together with Eni’s technological and financial capabilities;
- accelerate the growth of Eni and Falck Renewables in the US and help reach their respective goals in terms of installed capacity and green energy generation.
Develop 1 GW project portfolio by 2023
The venture will have shared governance and will be dedicated to developing at least 1 GW in projects by the end of 2023. ENE US and FRNA will have various options to acquire projects from the venture, either consolidated line-by-line by ENE US (100 percent) or by FRNA (100 percent or with a minority 49 percent stake for ENE US). Funding for the joint development company and its profits will be split equally between the owners.
For Eni, the agreement with Falck Renewables opens up a new, low-risk and highly fluid market in which we are aiming to grow very quickly. This partnership will benefit from the knowledge and renowned experience of Falck Renewables, enabling Eni to accelerate its plans to increase its renewable energy capacity and laying the foundations for achieving our decarbonization objectives, said Luca Cosentino, Executive Vice President of Energy Solutions at Eni.
The sale to ENE US of 49 percent of FRNA’s existing assets pertains to a 112.5 MW portfolio comprising five photovoltaic plants in operation in North Carolina and Massachusetts, one of which, Middleton (Massachusetts) has an energy storage facility of 6.6 MWh. These plants will continue to be operated, controlled and consolidated by FRNA, which will own 51 percent of them.
We are excited to start working in a targeted way with Eni, which like us wants to contribute to the energy transition and be a key player in the renewables sector. We are really interested in bringing together the two companies’ capabilities and ambitions to create an agile and focused development company, with clear objectives in one of the world’s most dynamic and high-potential markets, said Toni Volpe, CEO of Falck Renewables.
The total value paid by ENE US to FRNA will be approximately US$70 million at closing, including a solar panel stock valued approximately US$12.7 million USD, and this will be adjusted in line with market practice. Closing is subject to certain conditions precedent and is expected by the first quarter of 2020.
