Advantage Capital announced that it has committed to offering a $137 million investment to Sabanci Renewables, a North American subsidiary of Sabanci Holding, to complete the financing of its Oriana Solar Project. Located about 120 miles southeast of San Antonio, Texas, in Victoria County, Oriana is a 232 MWdc utility-scale solar project currently under construction.
Advantage Capital’s investment, which utilizes Investment Tax Credits (ITCs) under the Inflation Reduction Act, will provide the remaining capital Sabanci Renewables needs to complete the project’s construction. And this closing represents the second tax equity financing in Texas between Advantage Capital and Sabanci Renewables during the past year, bringing the combined total energy capacity of Sabanci Renewables’ projects in the Electric Reliability Council of Texas (ERCOT) to more than 500 MWdc.
With operations expected to start in Spring 2025, the Oriana Solar Project includes 425,000 solar modules to be installed on 1,100 acres (equal to more than 800 football fields) and will be able to provide sustainable electricity to the equivalent of 65,000 homes in the region. And the project will create more than 300 employment opportunities during the construction period and 10 permanent jobs in its operation phase for local employees.
On December 18, 2023, Sabanci Renewables closed $185 million in tax equity financing with Advantage Capital for the Cutlass Solar II project outside of Houston. Cutlass II was completed and commissioned at full capacity ahead of schedule in May 2024.
A&O Shearman and K&L Gates served as counsel for Advantage Capital on the deal, and Troutman Pepper and Husch Blackwell served as counsel for Sabanci Renewables. Carbon Reduction Capital (CRC-IB), also served as exclusive financial advisor.
KEY QUOTES:
“We are pleased to expand our partnership with Sabanci Renewables to support building out the power grid in Texas through another utility-scale solar project. Oriana will have a profound impact on the Gulf Coast region by increasing the clean power supply to critical energy load centers, and Victoria County will reap the added benefit of new job creation for local workers.”
-Tom Bitting, Managing Director at Advantage Capital
“We are thrilled to reach another key milestone in our renewable energy journey in the United States with the Oriana Solar Project. This project highlights our strong commitment to accelerating the clean energy transition not only in Texas but throughout the U.S., while contributing to the economic growth of local communities. Our ongoing partnership with Advantage Capital plays a pivotal role in realizing our goal of delivering sustainable and dependable energy to numerous households and enterprises. Together, we are confidently building a brighter and more sustainable future.”
-Tolga Kaan Doğancıoğlu, CEO of Sabanci Renewables
