Repsol, the major global energy company, has completed an investment for a 40% stake in renewable power company Hecate Energy. The transaction closed back in June 25, however, Hecate Energy announced it this Tuesday.
Firstly, Hecate says the investment will be directed to grow its renewable portfolio currently under development in the U.S. This grows to almost 16,8 gigawatts of solar and energy storage projects, at advanced stages of development.
Secondly, the amount of the investment remained unknown. Nevertheless, Guggenheim Securities LLC acted as exclusive financial advisor; and placement agent to Hecate Energy in connection with the transaction.
Thirdly, the international law firm Winston & Strawn LLP, and the major accountancy firm CliftonLarsonAllen LLP provided the accounting services for Hecate Energy.
Moreover, the investment of Repsol in Hecate Energy comes after the company looks to grow its low-carbon energy solutions. In fact, the company is looking to achieve net zero emissions by 2050.
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Hecate’s resources will better position Repsol towards energy transition
In addition, the company employs 24,000 people worldwide; and also, distributes its products in nearly 100 countries to around 24 million customers. Consequently, its Low-carbon business of a key pillar of their net zero efforts.
Furthermore, Repsol currently has a total installed capacity of 3,300 MW; and is planning to increase its asset portfolio as it expands internationally and becomes a global operator; reaching a generation capacity of 7,500 MW by 2025 and 15,000 MW by 2030.
Consequently, the company will most likely reach its goal through increasing its low-emissions power generation capacity; also, the production of low-carbon fuels, development of new customer solutions; therefore, investing in Hecate Energy will better position the company to leverage from renewable energy.
On the other hand, Repsol’s Executive Managing Director of Client and Low-carbon Generation, María Victoria Zingoni, said. “Hecate’s development acumen and impressive portfolio of late-stage projects pairs well with our strategic objective of becoming a global low-emissions operator.”
Finally, Hecate Energy Chairman, David Tohir, said. “The resources Repsol brings to Hecate will allow us build and bring online more resources in significantly less time. Tackling global climate change means accelerating our progress in deploying significant quantities of renewable energy; and also, storage to drive decarbonization of the electric grid.”