Solar Trust of America said the banks will provide financial advisory services for its bid to secure the competitive award of U.S. Department of Energy loan guarantees and develop models for debt and equity project financing for its proposed solar thermal power plants in California and Nevada. The company has already applied for certification with the Department of Energy and expects to begin construction in 2010.
According to Solar Trust of America Chairman and Chief Executive Officer Uwe T. Schmidt, “The selection of Citigroup and Deutsche Bank combines the expertise of two leading global financial services firms with our business partners’ 75 years of experience in the financing, development, construction and operation of utility-size power plants. We believe their expertise will contribute to our goal of becoming the solar energy industry leader and help California and Nevada meet their renewable energy mandates and stimulate their economies.”
Together with its U.S. development subsidiary, Berkeley-based Solar Millennium, LLC, and global business partners Solar Millennium AG and MAN Ferrostaal AG, Solar Trust of America is actively pursuing the construction and development of multiple solar thermal power plants across the region. The company currently has solar thermal energy power plants in advanced stages of development, among them Ridgecrest, Palen and Blythe in California and in Nevada’s Amargosa Valley.
The Solar Trust of America Group has power purchase agreements (PPAs) in place with Southern California Edison (SCE) for development and construction of two 242-megawatt power plants, with an option to include a third 242 megawatt plant, for a total of up to 726 megawatts of capacity. The PPA agreements provide for the purchase of the output by SCE over a 20-year period. These solar thermal power plants are expected to begin operation between 2013 and 2014. Solar Trust of America also has in place a Memorandum of Understanding with Nevada Energy for development and construction of at least one 242-megawatt solar thermal power plant.
Solar Trust of America embraces U.S. federal and state government policies and initiatives to provide significant infrastructure investments, job creation and supplier opportunities in renewable energy through such programs as the American Recovery and Reinvestment Act of 2009 and the U.S. Department of Energy’s Loan Guarantee Program for renewable energy projects.
Schmidt noted that the development, engineering, local procurement and construction of the utility-size plants would provide an economic boost to both states. “Each of these plants features our proven, bankable parabolic trough technology and will include investments of more than $1 billion per plant project,” he said. “Each plant is expected to directly employ up to 800 skilled workers during the initial construction phase and create approximately 100 permanent jobs for operations, maintenance and management employees.” The plants are also expected to indirectly create thousands of additional jobs as Solar Trust of America procures materials, goods and services for each facility.
About Solar Trust of America
Headquartered in Cleveland, Ohio, Solar Trust of America, LLC, is an integrated industrial solar solutions company that is reshaping the energy landscape in the United States using in-house, commercially viable and proven parabolic trough solar thermal energy technology. The newly formed company is one of the first solar industry consolidators and integrators that provide a complete concentrated solar power (CSP) solution for the design, financing, construction, operation and management of utility-size solar thermal power plants. For more information about the company visit www.SolarTrustofAmerica.com.
This press release contains forward-looking statements relating to Solar Trust of America, its subsidiaries and the solar industry. In particular, statements regarding plans, estimates, assumptions, expectations or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning solar industry growth or other trend projections and statements about Solar Trust of America’s strategies, objectives, goals, targets, outlook, and business and financial prospects. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations.
Solar Trust of America, LLCPress and Analyst Contact:Bill Keegan, Director of Corporate Communications312.927.8424press@SolarTrustofAmerica.com.
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