17 Aug Offshore wind developer US Wind to receive $265 million investment from Apollo
Private equity firm Apollo Global Management has agreed to make a $256 million investment in offshore wind developer US Wind that will fund the construction of a project off the coast of Maryland.
The investment includes a mix of debt and equity and resembles Apollo’s first move into the US offshore wind market, which is finally beginning to take off after years of inactivity.
US Wind holds a lease on about 80,000 acres in waters around 10 to 30 miles from Maryland. The company aims to construct a 270MW wind power plant in the first phase of the project, although the lease can contain up to 1.3GW of installed wind power generation capacity.
“US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy,” said Geoffrey Strong, co-head of infrastructure and natural resources at Apollo.
Wind power provides about 7.3% of total electricity supply in the US, making it the largest source of renewable energy in the country, but the majority of this is still generated onshore. However, limited availability of land and growing conflict with local communities have pushed developers into the offshore sector in recent years.
Elsewhere, UAE-based energy company Masdar last week sealed a deal with EDF Renewables to acquire a 50% stake in a 1.6GW portfolio of wind, solar and energy storage projects across the US.