KKR-backed ContourGlobal seals $350-mn funding package for US solar project

<p>ContourGlobal has secured over $350 million in funding for its Colorado solar installations, with a tax equity investment from Tyr Energy and debt financing from international lenders.</p> — ContourGlobal has secured over $350 million in funding for its Colorado solar installations, with a tax equity investment from Tyr Energy and debt financing from international lenders.

ContourGlobal has secured a funding package worth more than $350 million to support its solar installations in Colorado, the group owned by US investment fund KKR said on Thursday.

The deal includes a tax equity investment from Tyr Energy, part of Japan's ITOCHU Corporation, and a debt deal arranged with a group of international lenders.

As an increasing number of data centres for powering artificial intelligence and decarbonisation efforts boost demand for electricity in the United States, investors and banks are teaming up with energy producers to fund their projects. The funding package backs ContourGlobal's Black Hollow Sun project, which is expected to reach a peak output of 324 megawatts when its second phase is completed by end-2026. The debt financing was arranged by a club of international lenders, including Credit Agricole CIB, ING Capital LLC, Intesa Sanpaolo, Mizuho, and MUFG.

The total financing could exceed $421 million upon completion of the second phase of the solar project, ContourGlobal said.