Big ambitions: Repsol bursts into US onshore wind with $768m development pipeline deal
CEO Josu Jon Imaz sees acquisition of ConnectGen's 20GW platform giving Repsol a launch pad across the high growth US clean energy space this decade
Spanish oil giant Repsol on Thursday said it had entered the US onshore wind market by agreeing to acquire the renewable energy platform ConnectGen for $768m (€715m) from Houston-based Quantum Capital Group.
The deal involves 20GW of onshore wind, solar PV, and energy storage in ConnectGen’s project pipeline “at different levels of maturity across the most attractive US energy regions,” according to Repsol, which expects to close it in the fourth quarter.
ConnectGen employees, including senior management led by CEO Caton Fenz, will join Repsol’s renewable energy team.
The Spanish firm said the acquisition will strengthen its position as a global player in the renewable energy business after setting an internal goal to have 20GW of capacity in commercial operation by 2030.
In 2021, it purchased 40% of US solar and storage developer Hecate Solar with an option to acquire the rest three years after closing the deal. Repsol said ConnectGen’s onshore wind power growth platform will complement Hecate’s project development capabilities.
“The addition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the greatest potential for future growth,” said Repsol CEO Josu Jon Imaz.
Through Hecate, Repsol operates about 245MW of solar projects and 20MW of battery storage in the US. Ambitious plans call for having 2GW of renewable and storage projects in commercial operation by 2025 and more than 8GW by the end of this decade.
By comparison, industry pacesetter NextEra Energy Resources and billionaire Warren Buffett’s Berkshire Hathaway Energy are the country’s only present clean power owners with more than 8GW capacity.
Several big reasons are greater interconnection and permitting challenges than solar, which has become cheaper and faster to build. Solar energy is often more available during peak demand periods in key markets such as Texas, making it more valuable than wind and easier to shape and sell as off-take to meet surging corporate demand.
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