Nexus Renewable Power has completed a series of transactions that collectively bring in around $220 million to fund MRG Goody Solar and Storage, known as Project Goody. This ambitious project involves the development of a solar energy facility with a capacity of 171.72 megawatts alternating current (MWac), complemented by a storage system capable of holding 237 megawatt-hours (MWh) of energy. Both the solar and storage facilities are located in Lamar County, Texas, marking a significant step toward sustainable energy solutions in the region.
In these transactions, Goldman Sachs is stepping in with a preferred equity investment to support the financing that leverages tax incentives. This strategic financial backing is essential for the hybrid tax equity financing structure being utilized for Project Goody. Additionally, Nexus Renewable Power has entered into a tax credit purchase agreement, which will further enhance the project’s financial stability and appeal.
Meta, which operates data centers, will purchase the power generated from Project Goody. This partnership is particularly beneficial as it helps Meta align its energy consumption with clean and renewable sources, thereby reducing its overall carbon footprint and supporting sustainability initiatives.
This recent funding adds to an already considerable financial foundation for the project, which includes a previously announced $300 million construction-to-permanent financing facility arranged by HPS Investment Partners. Furthermore, a separate $100 million joint venture has been established for carbon credit financing with Nexus-Bad Carbon, underscoring the project’s commitment to environmental responsibility.
Currently, Project Goody is under construction, with plans to begin commercial operations in the fourth quarter of 2025. This project is noteworthy because it serves as the first in a series of renewable energy initiatives that Nexus plans to develop and construct. Project Goody is expected to bring substantial economic benefits to Lamar County, generating hundreds of construction jobs during its development phase. Additionally, it will contribute millions in long-term tax revenues, which can support vital community services, such as the local school district.
The project is named in honor of Michael R. “Goody” Goodboe, a highly decorated Navy SEAL who tragically passed away on November 24, 2020, due to injuries sustained while serving abroad. Goodboe dedicated his life to serving his country across numerous conflict zones, including Iraq, Afghanistan, Eastern Europe, and Africa. He is remembered not just for his impressive military achievements but also for his unwavering spirit, sense of humor, and the high standards he set for himself and his fellow servicemen. With Project Goody, Nexus Renewable Power pays tribute to his legacy while contributing positively to the environment and the community he called home.
Advisors: CRC-IB (CRC) acted as financial advisor, and Sidley Austin and Husch Blackwell acted as legal counsel, respectively, to Nexus. Troutman Pepper Locke acted as legal counsel for Goldman Sachs.
KEY QUOTES:
“Nexus is proud to be working with strong partners on Project Goody and is looking forward to long term relationships with each of them. Our focus on having strong partners is one the ways we distinguish ourselves in the ERCOT market and enables us to focus on operating these assets for the long haul”.
Sargon Daniel, CEO of Nexus Renewable Power
“Our partnership with Nexus Renewable Power LLC demonstrates the benefits of our integrated approach across financing and commodity risk management products. By providing the preferred equity investment, as well as being able to combine power markets intelligence and offtake transaction structuring, Goldman Sachs is able to provide sponsors like Nexus with a unique and comprehensive solution tailored to their needs.”
Sarah Kiernan, co-head of Global Commodities Sales and Global Commodities Financing & Structured Trading at Goldman Sachs
“We’re proud that Meta’s global data center operations are matched by 100% clean and renewable energy, and we are excited to bring more new renewable energy to the grid through this important partnership with Nexus and the Goody project.”
Urvi Parekh, Head of Global Energy at Meta
