7X Energy Sells 130 MWac Elara Solar to KOMIPO America Inc.
Elara will be the second largest solar project in ERCOT South Zone
AUSTIN, TX – 7X Energy, Inc. (“7X”), a leading utility-scale solar developer, owner, and asset manager, announced it has sold its 130 MWac Elara Energy Project (“Elara” or “Project”), located in Frio County, Texas on over 1,700 acres, to KOMIPO America, Inc., which is the U.S. subsidiary of Korea Midland Power Co., Ltd., one of the major power companies in Korea, which is also actively doing business globally.
Morgan Stanley Renewables Inc. is anticipated to be the sole tax equity investor for the Elara project. CohnReznick Capital served as the financial advisor to 7X, providing support across capital formation and structuring. Elara is currently under construction and is expected to reach full commercial operation in Q4 2021.
Elara’s energy and environmental attributes are being sold under three long term offtake agreements. As previously announced, 30 MW of the energy and environmental attributes produced by Elara will be sold to EDF Energy Services under a long-term power purchase agreement. The remaining 100 MW of energy produced by Elara is subject to a long-term hedge agreement with Morgan Stanley Capital Group Inc. Lastly, 100 MW of RECs will be sold to Fathom Energy, LLC under a long-term REC Purchase Agreement.
“With Elara, 7X has now successfully originated over 2,100 MWdc of solar projects either in operation or under construction,” said Clay Butler, President and CEO of 7X Energy. “We are extremely proud, as a team, of playing our small part in assisting future generations in achieving a more sustainable energy future.”
Hobin Kim, the CEO of KOMIPO, applauded Elara as a “milestone project for KOMIPO” as it is the first Texas solar project implemented by a Korean government owned power company in response to the growing global efforts to reduce greenhouse emissions and intergovernmental cooperation to fight climate change. “We are committed to expanding our renewable portfolio in the U.S. to continue to lead and promote the growth engine of the global renewable energy industry,” said CEO Kim.
“We are please to provide the investment for Elara, as we continue to advance the transformation of the U.S. energy grid towards a lower carbon future,” said Jorge Iragorri, Head of Alternative Financing and Managing Director of Morgan Stanley.
“Our partnership with Korea Midland Power and 7X Energy, will bring to fruition an important renewable resource in Texas,” said Angelin Baskaran, Head of Power Origination for the Eastern U.S. and Managing Director at Morgan Stanley.
Swinerton Renewable is the engineering, procurement, and construction (EPC) contractor and SOLV, a subsidiary of Swinerton, will manage the operations and maintenance for the project. The project is using Nextracker components, Power Electronics Freesun HEM inverters, and over 435,000 Jinko modules. Over the life of the facility the project is expected to provide more than $22 million in total taxes to Frio County, Pearsall ISD, and Frisco Hospital District.
Counsel for the transaction included Norton Rose Fulbright as counsel to 7X Energy, Inc.; White & Case LLP as counsel to KOMIPO; Mayer Brown LLP as counsel to Morgan Stanley Renewables Inc; and Katten Muchin Roenman LLP as counsel to Morgan Stanley Capital Group Inc.
For additional information on the Elara Energy Project, please visit here.