Naturgy enters U.S. renewables market with acquisition, plans $1.8b investment

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Spanish energy company Naturgy has entered the U.S. renewables market with the acquisition of solar and energy storage developer Hamel Renewables. According to a Reuters report, the deal is valued at $57 million.

In an announcement, Naturgy said Hamel Renewables’ project portfolio includes 8 GW of solar and 4.6 GW of energy storage across nine states. Of these projects, 25 sites totaling 3.2 GW of solar and 2 GW storage could be operational before 2026.

The integrated gas and electricity company said it plans to invest up to $1.8 billion in the U.S. over the next five years to reach 1.85 GW of operational solar capacity in 2025. The company retains the option to develop the remaining pipeline, adding up to 8 GW of solar projects until 2030.

As part of the transaction, Naturgy also signed an exclusive five-year development agreement with Candela Renewables, a utility-scale developer founded by former First Solar workers in 2018.

Naturgy said its initial U.S. market investment demonstrates the company’s commitment to developing renewable energy internationally, focusing on stable geographies and early-stage projects.

The company’s renewables portfolio includes wind, hydroelectric, and solar projects in its domestic market and abroad. The company reported 403 MW of total installed solar capacity in Spain and Brazil at the end of 2019.

Naturgy and gas company Enagás also recently announced plans to build one of the largest hydrogen plants in Spain. The aim is to produce up to 9,000 tons per year of renewable hydrogen from a 400 MW PV plant and an electrolyzer of up to 60 MW.

Naturgy joins other European companies making moves into the U.S. renewables market. Earlier in January, French energy giant Total entered a joint venture to build 1.6 GW of U.S. solar and storage.

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