Linea Energy announced the closing of a tax equity financing with Crux for its Watertown solar project. Watertown is a 172 MWdc utility-scale solar energy facility located in Sanilac County, Michigan.
The Watertown financing package includes a single-investor tax equity commitment from Crux. Linea said the tax equity commitment is the final commercialization transaction for the project.
Linea previously announced a $299 million project debt raise for Watertown. That debt package included a construction-to-term loan, a tax equity bridge loan, and a letter of credit facility.
The debt financing was led by Santander Corporate & Investment Banking. Société Générale, Norddeutsche Landesbank Girozentrale, and Truist Bank also participated in the financing.
With the investment from Crux, the total capital raised for the Watertown project now totals $457 million. The project is contracted under a 25-year power purchase agreement with Consumers Energy, a regulated Michigan utility operating under the jurisdiction of the Michigan Public Service Commission.
Watertown is now under construction and is expected to support about 150 construction jobs. The project is also expected to generate enough clean energy to power approximately 25,126 Michigan homes annually on the Midcontinent Independent System Operator grid.
Linea said the annual power output is roughly equivalent to supplying every home in a city the size of Pontiac. Commercial operations are expected to begin in mid-2027.
Over its operating life, Watertown is projected to deliver $16.4 million in local property tax revenue to Sanilac County. The project is also expected to reduce carbon emissions by approximately 148,389 metric tons annually.
Linea said the tax equity closing represents another milestone in its growth as an independent power producer in the U.S. renewable energy market. The company is sponsored by EnCap Investments and focuses on developing, owning, and operating clean energy infrastructure.
Linea is headquartered in San Francisco and is building a portfolio of solar, battery energy storage, and wind projects. The company said it is focused on developing clean energy projects through more efficient development strategies and processes.
Crux is a capital platform for the clean economy. The company provides solutions across advisory, investments, technology, and intelligence for clean energy and critical infrastructure capital raising and deployment.
Orrick, Herrington & Sutcliffe served as borrower’s counsel to Linea Energy. Sidley Austin served as legal counsel to Crux.
KEY QUOTES:
“Watertown represents exactly the kind of project Linea was built to execute — a large-scale, long-term clean energy asset paired with creditworthy offtake and an efficient financing structure. Linea’s acquisition of the Project in December 2024, and subsequent completion of development, commercialization, financing, and conversion to construction reflects the strength and depth of the Linea platform. We’re proud to be bringing meaningful economic benefits to Sanilac County and clean, reliable power to Michigan consumers. We are grateful to Crux, Santander, and our full financing team for their partnership in getting this project to the construction phase.”
Cassidy DeLine, CEO of Linea Energy
“Watertown is a strong example of the high-quality projects that define the market today — long-tenor contracted revenue and a financing structure that brings together the right capital in the right form. We’re pleased to support Linea Energy as they bring this project to market and look forward to continuing to deploy capital alongside next-gen independent power producers like Linea as clean energy demand continues to grow.”
Yonette Chung McLean, Chief Capital Officer of Crux
