California Wind Farm Closes Financing, Starts Construction
09 October 2009 - 10:38AM
Dow Jones News
The developer and the owner of a 101-megawatt wind farm in
northern California said Thursday they're starting construction on
the project after lining up financing from six lenders.
The Hatchet Ridge wind farm, owned by a unit of private-equity
firm Riverstone Holdings LLC, will be built on a mountain ridge in
Shasta County, Calif., using 44 wind turbines made by Siemens AG
(SI). The project is estimated to be completed by the end of 2010,
said RES Americas, which is developing the project. PG&E Corp.
(PCG) unit Pacific Gas & Electric Co. has signed a 15-year
contract to purchase the output from the facility.
Debt financing for the project is being provided by French banks
Natixis (NTXFY, KN.FR), Credit Agricole SA's (CRARY, ACA.FR) Calyon
investment-banking unit and Societe Generale SA (SCGLY); German
banks Landesbank Baden-Wurttemberg and WestLB AG, and U.S. bank
Union Bank.
"It's a very good project and everything came together," said
Mike Garland, chief executive of Pattern Energy, the Riverstone
unit that owns the project. Garland noted that the Hatchet Ridge
project will be the first utility-scale wind farm in California to
start construction this year.
The wind farm will generate enough electricity to serve about
44,000 homes, and will create up to 200 construction jobs while the
facility is being built, Pattern Energy said.
The project was previously owned by a unit of distressed
Australian firm Babcock & Brown, which Riverstone Holdings
bought in July and renamed Pattern Energy.
PG&E and other California utilities are required by state
law to use renewable sources for a fifth of the power they sell by
2010, and a third of their retail power by 2020.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com