$1.2 Billion Tax Equity Transaction - The Largest to Date?

$1.2 Billion of capital was just raised for the first large-scale offshore wind farm

Photo by Nicholas Doherty on Unsplash

Last week a Vineyard Wind I, a joint venture between Copenhagen Infrastructure Partners and Avangrid (controlled by Iberdrola, S.A) announced that three banks are investing $1.2 billion into their project using tax financing.

The Inflation Reduction Act allows more energy credits to be transferred to corporations in return for cash. There is a push to allow individuals to purchase these credits but as of yet that is still not quite in place.

Vineyard Wind I is the large offshore wind project located about 30 miles off of the Massachusetts coast and is slated to be the largest offshore wind project in the US.

J.P. Morgan Chase, Bank of America and Wells Fargo will receive an undisclosed amount of tax credits from the project in return for the $1.2 billion investment. This is the largest single asset tax equity financing to date, but it may not keep the title for long since there are many more large projects coming online.

We will keep you posted.