NEW YORK, August 1 — Northampton Capital Partners LLC (“Northampton” or the “Firm”), an alternative asset management firm focused on infrastructure investments across North America, in partnership with pension investor APG Asset Management (on behalf of pension fund ABP) (“APG”) and other institutional investors, announced today an agreement to form Cypress Infrastructure and make a strategic preferred investment in a renewable energy portfolio owned by Terra-Gen, LLC (“Terra-Gen”), one of the largest independent, integrated renewable energy producers in the United States, jointly owned by Masdar and Igneo Infrastructure Partners.
The transaction marks the initial investment for Cypress Infrastructure, a Northampton managed investment vehicle focused on providing flexible, creative, long term capital solutions to high-quality U.S. renewable energy projects.
The portfolio includes two assets: Lockhart, a 128.7-MW four-hour battery energy storage system co-located within the Terra-Gen’s solar and battery resources in San Bernardino County, California, and Monte Cristo I Windpower, a 238.5-MW wind project in Hidalgo County, Texas.
The Lockhart energy storage project comprises 164 battery enclosures and utilizes the existing gen-tie line connecting to Southern California Edison’s (“SCE”) Kramer Junction Substation. The resource adequacy capacity is fully contracted under a long-term resource adequacy agreement.
The Monte Cristo wind farm has the capacity to generate more than 850 gigawatt-hours of clean electricity annually, equivalent to powering approximately 81,000 homes a year. The facility’s capacity has been contracted to two corporate buyers through long-term power purchase agreements.
Andrew Kapp, Founding Partner at Northampton Capital Partners, said, “We are pleased to partner with Terra-Gen on this high-quality portfolio of contracted renewable assets. Monte Cristo and Lockhart are well-positioned to serve growing electricity demand in two of the most dynamic power markets in the country, and we see Cypress’s investment as a strong fit for our infrastructure strategy.”
Geoffrey Strong, Founder and CEO at Northampton Capital Partners, said, “Northampton is excited to introduce Cypress Infrastructure as a capital source and partner for renewable power developers and producers. Our ability to provide creative capital solutions is a win-win for both Cypress Infrastructure and Terra-Gen, a leading renewable power producer.”
John O’Connor, Chief Executive Officer of Terra-Gen, said, “We are pleased to partner with Northampton on this creative transaction, bringing us a new capital partner that facilitates our shared goal of advancing our growth objectives. Through this partnership, we will continue to operate, optimize and retain long-term ownership over these highly attractive assets that we have developed.”
Milbank LLP served as legal counsel to Cypress Infrastructure and Northampton, and Latham & Watkins and BNP Paribas served as advisors to Terra-Gen.