Eni and Falck Renewables JV to Develop 1 GW RE Projects

Eni and Falck Renewables have signed a strategic agreement for the joint development (JV) of renewable energy projects in the United States.

Eni Falck Renewables JV

Italian major Eni and Falck Renewables have signed a strategic agreement for the joint development (JV) of renewable energy projects in the United States. The agreement involves the creation of a venture owned 50 percent by Eni New Energy US and 50 percent by Falck Renewables North America (FRNA) for the development, construction and financing of new solar PV, wind onshore and energy storage projects. Under the terms of the agreement, FRNA will simultaneously sell ENE US 49 percent of its ownership interests in the plants currently in operation in the United States.

The deal enables the two partners to:

  • establish a significant platform for the development of new projects from renewable sources in an evolved US market, which offers significant growth prospects.
  • operate through a new company that will cover the phases of development, construction and financing of new projects combining Falck Renewables’ know-how in renewable assets together with Eni’s technological and financial capabilities.
  • accelerate the growth of Eni and Falck Renewables in the US and help reach their respective goals in terms of installed capacity and green energy generation.

The venture will have shared governance and will be dedicated to developing at least 1 GW in projects by the end of 2023. ENE US and FRNA will have various options to acquire projects from the venture, either consolidated line-by-line by ENE US (100 percent) or by FRNA (100 percent or with a minority 49 percent stake for ENE US). Funding for the joint development company and its profits will be split equally between the owners. 

The sale to ENE US of 49 percent of FRNA’s existing assets pertains to a 112.5 MW portfolio comprising five photovoltaic plants in operation in North Carolina and Massachusetts, one of which, Middleton (Massachusetts) has an energy storage facility of 6.6 MWh. These plants will continue to be operated, controlled and consolidated by FRNA, which will own 51 percent of them.

The total value paid by ENE US to FRNA will be approximately 70 million USD at closing, including a solar panel stock valued approximately 12.7 million USD, and this will be adjusted in line with market practice.

Luca Cosentino, executive vice president of Energy Solutions at Eni, said that for Eni, the agreement with Falck Renewables opens up a new, low-risk and highly fluid market in which it is aiming to grow very quickly.

“This partnership will benefit from the knowledge and renowned experience of Falck Renewables, enabling Eni to accelerate its plans to increase its renewable energy capacity and laying the foundations for achieving our decarbonisation objectives.”

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Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

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