Apollo to invest $265m in Maryland offshore wind project owner US Wind
Apollo Global Management said that certain funds managed by its affiliates (Apollo Funds) have agreed to make an equity investment of $265 million in offshore wind energy development company US Wind, which owns the rights to develop the Maryland offshore wind project.
Apollo Funds have also committed to funding the development and construction costs pertaining to the offshore wind energy project off the Maryland coast.
The Maryland-based US Wind controls the Maryland Wind Energy Area under a lease from the US Bureau of Ocean Energy Management (BOEM) of around 80,000 acres located 10-30 miles off the state’s coast. The leased area can accommodate the installation of an estimated 1.3GW of renewable power generation.
US Wind is majority-owned by Renexia, an Italian renewable energy developer, owned by Toto Holding.
Riccardo Toto – President of US Wind said: “We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing development of our offshore wind projects.
“Apollo is a creative and dynamic partner, with global expertise, and together we believe we can make a positive impact on the energy transition in the United States.”
The first phase of the Maryland offshore wind project with an investment of around $1.5 billion will have 270MW capacity for powering over 75,000 Maryland homes.
US Wind intends to sell the power generated from its wind project and Offshore Wind Renewable Energy Credits under the Maryland Offshore Wind Energy Act of 2013.
Expected to begin operations early 2024, the Maryland offshore wind project will have an operational life of more than 25 years, while generating thousands of jobs.
Geoffrey Strong – Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo Global Management said: “US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy. For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the Firm’s strong commitment to sustainability.”