RWE joins massive US green power plan on land as Trump fears hit offshore prospects
German powerhouse joins Peabody in 5.5GW clean energy development on former Midwestern coalmining sites
German power company RWE has joined US coal producer Peabody Energy in 5.5GW of solar and storage developments on repurposed former mining lands in the Midwestern states of Indiana and Illinois, the companies announced Thursday.
The move comes on the heels of RWE’s move to sideline its massive US offshore wind investments following the election of sector critic Donald Trump to the presidency.
RWE will acquire a majority stake in R3 Renewables, Peabody’s joint venture (JV) that reclaims land previously used for coal mines to develop renewable energy projects. R3 Renewables includes Summit Partners Credit Advisors and Riverstone Credit Partners, with Peabody retaining a 25% interest.
“Solar and storage facilities are a great way to bring economic development via construction jobs, local and domestic investment, and direct community benefits and taxes as well as a contribution to energy security,” said Andrew Flanagan, RWE clean energy CEO.
RWE will directly acquire seven of the 10 renewables projects underway by R3 Renewables, while participating in the remaining three through a JV with Peabody.
“Our new partnership with a globally recognised renewable energy leader represents significant added momentum in our initiatives to develop renewable projects on Peabody’s formerly mined lands,” said Jim Grech, Peabody CEO.
The initiative will advance renewable energy development in the Midcontinent Independent System Operator (MISO) region while promoting economic development and powering some 850,000 homes.
Trump wind slowdown
Investment tax credits (ITC) of up to 10% off total capex are on offer for projects constructed in “energy communities”, brownfield sites impacted by fossil fuel extraction or power generation.
RWE CFO Michael Müller said during a Moody’s utilities forum Tuesday that Trump’s stance on offshore wind prompted the German power giant to put its US offshore wind projects “on hold” until there is more clarity.
RWE’s global offshore wind plans currently include development off the US east and west coasts and in the Gulf of Mexico.
The group’s most advanced project is the 3GW Community Offshore Wind under development in conjunction with National Grid off the east coast, which aims to sell power into New York.
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