Swiss food and beverage company Nestlé SA agreed to become the sole tax equity investor of 7x Energy Inc.'s 250-MWac Taygete I solar project in Pecos County, Texas.
The project is expected to begin full commercial operation in early 2021, and construction activities are complete.
Energy generated from the project will be sold to an unnamed buyer and through a long-term hedge agreement to J. Aron & Co. LLC. Nestlé will purchase all renewable electricity attributes generated by Taygete I for 15 years.
"Nestlé's investment in Taygete I is an important milestone on our journey to achieve net zero by 2050," Chief Supply Chain Officer Jim Wells said. "[W]ith this step, we continue to be on track for a 35% [greenhouse gas] emissions reduction per tonne of product in our U.S. manufacturing facilities by the end of 2020."
The partnership with Nestlé completes financing for the project. CIT was the coordinating lead arranger, and the other lenders were Deutsche Bank, National Bank of Canada, CIBC, Rabobank and Amalgamated Bank.
Marathon Capital acted as exclusive financial adviser to Nestlé on the transaction.