Swift Current Energy reported that it has closed on a tax equity investment from Google for its 800 MWdc Double Black Diamond Solar project in southern Illinois. The amount of funding by Google was not disclosed, but previous reporting by pv magazine USA stated that over $779 million in project financing was closed for this project, making it among the largest solar project financings in U.S. history.
Located 30 miles west of Springfield, Illinois, the Project is currently under construction and is expected to reach commercial operations by early 2025. Once operational, according to Swift Current Energy, Double Black Diamond Solar is expected to be the largest solar project east of the Mississippi River.
The tax equity financing makes use of energy communities and domestic content adders, provided in the Inflation Reduction Act.
Energy communities are those that are expected to face challenges in the transition away from fossil fuels, such as certain metropolitan statistical areas (MSA) and non-metropolitan statistical areas based on unemployment rates. The domestic content adder is a 10% tax credit bonus for solar, wind, and battery energy storage developers that install projects using U.S.-made components, adding to the 30% base investment tax credit.
“As we work to responsibly grow our infrastructure, we need to partner with companies like Swift Current who understand the nuances of the energy markets where we operate and can help unlock new clean energy at a rate that matches the pace and scale of demand growth on electric grids today,” said Amanda Peterson Corio, global head of data center energy at Google.
The project uses First Solar modules, a majority of which are being manufactured in the US, as well as solar trackers from U.S.-based Nextracker. At peak construction, the project employed approximately 500 construction workers. Swift Current is the project developer and will be the long-term owner and operator, and McCarthy Building Companies is the engineering, procurement, and construction (EPC) partner.
Swift Current Energy said that Double Black Diamond Solar will contribute to communities in Sangamon and Morgan counties. The Project, capable of powering 100,000 homes annually, is expected to reduce regional carbon dioxide emissions by approximately one million tons per year.
“We are proud to be home to one of the largest clean energy projects in the nation,” said Andy Van Meter, Sangamon County board chairman. “The Double Black Diamond Solar project brings significant economic benefits to our community, contributing $100 million in tax revenue and supporting hundreds of jobs. This project is a win for both our community and the environment.”
Energy producer Constellation NewEnergy reportedly will purchase a portion of the energy and renewable energy credits (RECs) generated by Double Black Diamond Solar to serve the seven customers that have been announced. The City of Chicago will source renewable energy produced by the Project to power several energy-intensive facilities, including Chicago O’Hare International Airport and Midway International Airport. Additionally, Cook County Illinois, CVS Health, Loyola University of Chicago, PPG, State Farm, and TransUnion have agreements to purchase power from the Project via Constellation.
Mitsubishi UFJ Financial Group (MUFG), Societe Generale, Truist and ING provided construction financing for the Project. Vinson & Elkins LLP and Husch Blackwell LLP represented Swift Current in the transaction. Milbank LLP and Bryan Cave Leighton Paisner LLP represented Google.
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