January 16 (Renewables Now) - Longroad Energy will sell two wind parks in Minnesota to utility Xcel Energy (NASDAQ:XEL) after implementing a repowering plan to lift the asset’s combined capacity to 70 MW.
The US renewables developer said on Wednesday it has achieved financial close on the scheme and is ready to start the repowering. The Community Wind North and Jeffers Wind power plants in Lincoln and Pipestone counties will be upgraded by Denmark’s Vestas Wind Systems (CPH:VWS) under a turnkey contract that includes their repowering, construction and the delivery of equipment.
Xcel Energy will acquire the wind farms after the repowering is completed, which is planned to occur by end-2020.
Longroad will back the project with a construction loan of USD 128 million (EUR 114.8m) provided in a deal in which KeyBank and HSBC (NYSE:HSBC) were the coordinating lead arrangers and joint book runners. The company said it has owned the two assets since 2017.
(USD 1.0 = EUR 0.897)