A monumental week for developer giant 8minutenergy just keeps growing, as the company announced that it has entered into a joint venture with J.P. Morgan and Upper Bay, totaling over $200 million in capital commitments.
This $200 million capital commitment will be put to work by 8minutenergy, as it looks to complete its 10.7 GW pipeline of utility solar + storage projects. This pipeline, representing projects in California, Texas and the rest of the American Southwest, includes the final 20% of the 800 MW Mount Signal solar cluster. The company also announced that some of the equity will drive construction of the 280 MW Holstein 1 power plant in Texas, which 8minutenergy plans to break ground on in the second quarter of 2019.
“We thank J.P. Morgan and Upper Bay for bringing the long-term focus and financial resources to enable us to unleash the full potential of our pipeline and incredibly talented team,” said newly-appointed 8minutenergy President and CEO Tom Buttgenbach in a press release announcing the venture.
8minutenergy will be receiving the $200 million in equity through committed capital expenditures that J.P. Morgan and Upper Bay have with 8minutenergy over the lifetime of this venture. The deal is one of equity, rather than debt. So, instead of being given the capital by J.P. Morgan and Upper Bay and paying back the total plus any garnered interest over the life of the loan, 8minutenergy is instead offering to its partners investments in the projects of the 10.7 GW pipeline.
The announcement comes just four days after 8minutenergy’s major executive overhaul, with co-founder and then-CEO Martin Hermann being bought out of his ownership share. And with this news comes even more executive action, as 8minutenergy will be re-adding Alex O’Cinneide, founder and CEO of Gore Street Capital, to 8minutenergy’s Advisory Board.
“I am excited to rejoin the advisory board of the company as it continues its extraordinary growth path,” said O’Cinneide in the release. “I look forward to leveraging the experience of financing utility-scale energy storage projects for the company, gained through running the first publicly traded fund established to invest in diversified utility-scale energy storage projects.”