Largest Financing to Date Supports Acceleration of Renewables and Continued Expansion for ENGIE in the U.S.
HOUSTON – ENGIE North America (ENGIE) announced that it recently completed more than $1bn of Tax Equity financing, through separate agreements with three banks, J.P. Morgan, Goldman Sachs and BNP Paribas. The financing pertains to a portfolio of recently commissioned renewable projects in the U.S.
The overall portfolio consists of 6 projects across ERCOT, MISO and SPP, including 950 MW of solar and 353 MW of wind capacity. The aggregate 1.3 GW of these renewable projects represents one of the largest Tax Equity financing arrangements for ENGIE North America so far.
“We are delighted that ENGIE is once again able to collaborate with some of the world’s leading financial institutions to accelerate the energy transition towards a net zero future,” said Dave Carroll, Chief Renewables Officer and SVP, ENGIE North America. “This transaction reflects our proven and recognized track record in developing, building and operating renewables assets, both in North America and globally”.
ENGIE is a leader in the net zero energy transition and currently has more than 7 GW of renewable production in operation or construction across the U.S. and Canada.
“ENGIE can rely on its strong relationships with leading financial investors to support its continued acceleration of renewable growth in the U.S.,” said Audrey Robat, Chief Financial Officer, ENGIE North America. “This deal also highlights the outstanding level of commitment and expertise of our teams in delivering reliable and affordable renewable generation to the grid.”
Globally ENGIE has an aspiration to add 4 GW per year globally through 2025, with North America as a material contributor to that growth.
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About ENGIE North America
Based in Houston, Texas, ENGIE North America Inc. is a regional hub of ENGIE, a global leader in low-carbon energy and services. ENGIE (ENGI), is listed on the Paris and Brussels Stock Exchanges. Together with our 96,000 employees around the globe, our customers, partners and stakeholders, we are committed to accelerate the transition toward a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions. Inspired by our purpose (“raison d’être”), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers. In North America, ENGIE helps our clients achieve their energy efficiency, reliability, and
ultimately, their sustainability goals, as we work together to shape a sustainable future. We accomplish this through: energy efficiency projects, providing energy supply (including renewables and natural gas), and the development, construction and operation of renewable energy assets (wind, solar, storage and more). For more information on ENGIE North America, please visit our LinkedIn page or Twitter feed, https://www.engie-na.com/ and https://www.engie.com.
Contacts:
ENGIE North America
Michael Clingan, External Relations
Michael.clingan@external.engie.com
832-745-6057
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Business Highlights
- Fundamental de-risking of nuclear exposure through agreement on all waste liabilities and extension of Doel 4 and Tihange 3
- Expected acceleration in Renewables with 6.6 GW under construction at the end of June
- Reinforcement of ENGIE’s renewables platform in South Africa following the acquisition of BTE Renewables and full consolidation of Kathu
- Commissioning of ENGIE’s largest battery energy storage system Hazelwood in Australia
- Awarded a 30-year concession of 1,000 km of power lines in Brazil
- 100% renewable power generation in Brazil after Pampa Sul coal plant disposal
Financial Performance
- EBIT of €6.7bn excluding Nuclear, up 53% organically, driven mainly by GEMS and Renewables
- Strong growth in CFFO1 driven by EBITDA growth and improvement in Working Capital Requirements
- Impact of Belgian nuclear transaction integrated in financial results at 30 June
- Solid balance sheet and improving economic net debt to EBITDA ratio at 2.7x, including impact of the agreement on nuclear liabilities
- Net financial debt decreasing to €23.0bn, down €1.1bn, economic net debt increasing to €41.4bn
- FY 2023 guidance confirmed, with NRIgs2 expected in the range of €4.7-5.3bn
Catherine MacGregor, CEO, said: “In the first semester, ENGIE has achieved a very strong financial performance, driven by the development of our renewable activities and the results of our energy management activities in a context still characterized by high price volatility. We have signed an agreement with the Belgian government significantly reducing the risks on the overall amount linked to the management of nuclear waste and providing the necessary visibility on the 10-year extension of the two units Doel 4 and Tihange 3. ENGIE has also made significant progress across all GBUs, including the acquisition of BTE Renewables in South Africa, the commissioning of BESS Hazelwood in Australia, and the success on the tender of 1,000 km power transmission lines in Brazil. In line with our strategic plan, we keep improving our business profile while leveraging our growth platforms. We are confident in the strength of our integrated model to meet the challenges of the energy transition both in the short and long-term.”
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