By Nichola Groom
Jan 6 (Reuters) - Silicon Ranch Corp, the U.S. solar project
developer backed by Royal Dutch Shell, on Thursday said
it raised $775 million in equity capital from new and existing
investors.
The announcement comes as renewable energy, and in
particular solar, is experiencing a dramatic expansion in the
United States. Financial institutions are seeking to capitalize
on that growth and satisfy growing investor demand for assets
that address climate change.
The round was led by new investor Manulife Investment
Management, a division of Canada's biggest life insurer,
Manulife Financial Corp, which contributed $400
million.
Existing investors Shell, TD Greystone Infrastructure Fund
and Mountain Group Partners also participated in the round. The
deal is expected to close in the current quarter.
Silicon Ranch, based in Nashville, Tennessee, owns and
operates more than 150 solar energy facilities in 15 states. Its
customers include rural electric cooperatives, utilities and
major corporations like Facebook.
Shell invested in Silicon Ranch in 2018 and owns about 45%
of the company.
The new funding will enable Silicon Ranch to build about 2
gigawatts of solar projects over the next 24 to 36 months,
doubling its current built capacity, Chief Executive Reagan Farr
said in an interview.
Two gigawatts of solar can power about 380,000 homes.
Silicon Ranch is also interested in making more acquisitions
like its purchase last year of Clearloop, a company that sells
carbon offsets to corporations to fund solar projects in
low-income communities.
"It really enables us to continue to grow and scale and
execute being not just a renewable energy solution provider, but
increasingly a carbon solution and ESG (environmental, social
and governance) provider as well," Farr said.
The United States is on track to install 348 GW of solar
over the next decade, more than three times the nation's current
solar capacity, according to the U.S. Energy Industries
Association.
(Reporting by Nichola Groom; Editing by Cynthia Osterman)
