Spanish multi-energy company Repsol SA (BME:REP) on Thursday announced that it has signed an agreement to acquire a 40% stake in Chicago-based solar and storage projects developer Hecate Energy LLC.
The move will allow Repsol to take its first steps it the US renewables market. The company already has an established presence in the US via its oil and gas operations.
The agreement will give Repsol the option to acquire Hecate Energy’s outstanding shares three years after this transaction closes, the Spanish group said without disclosing any financial details.
Hecate Energy’s background includes the sale of 2.6 GW of renewable energy projects since it was founded in 2012. According to Repsol, its portfolio totals over 40 GW, of which 16.8 GW are solar PV projects with co-located storage in advanced stages of development.
Most of Hecate Energy’s assets are located in the ERCOT, WECC AND PJM electricity markets, which are projected to grow significantly in the coming decade due to their respective states’ targets to reduce emissions. Repsol said that this spread makes the Chicago-based company’s portfolio one of the largest and the most geographically diversified in the US.
The oil-and-gas major will work to reach 7.5 GW of low-emission generation capacity by 2025 and 15 GW in 2030. Besides renewables, Repsol also operates cogeneration and combined cycle gas turbine (CCGT) plants, but does not expect to further boost the capacity of this segment under the 2021-2025 strategic plan.
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