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Green & Clean Power LLC (GCP) announced today that it has successfully secured around $300 million in funding, which includes both debt and equity, to develop and run a solar energy and battery storage facility in Osceola, Arkansas. The project will cover nearly 500 acres of land. KfW IPEX-Bank is contributing about $165 million in construction debt, with Aurora Energy Research acting as the Market Advisor. Additionally, the Arkansas Teacher Retirement System (ATRS) has committed $100 million in takeout financing. The construction of the facility is already underway, and it is expected to be completed by fall 2025.
Dr. Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank, said in a statement, “The sustainable production and recycling of steel plays a key role in global decarbonization. After providing financing for the Hybar rebar mill in 2023, we’re delighted to now support the clean power supply for this flagship project. With this financing, we again underline our commitment to projects that contribute to the worldwide transformation towards a carbon-neutral future.”
Mark White, Executive Director of The Arkansas Teacher Retirement System, also stated, “Sustainable steelmaking continues to make significant impacts on the state of Arkansas. We are pleased to support this newest entity knowing it benefits our state, it benefits our environment, and, most of all, it will benefit our members.”
GCP will initially provide renewable electricity directly to its sister company, Hybar LLC, which is building a nearby scrap metal recycling steel rebar mill. The mill, set to begin operations in the summer of 2025, will produce high-yielding rebar for large infrastructure projects. Investors in both GCP and Hybar include top climate-conscious firms such as TPG (through its TPG Rise Climate fund), Quanta Services, Inc., and Global Principal Partners, the investment group led by Hybar’s senior management. The solar and battery storage parts of the project are being delivered through a comprehensive EPC agreement with DEPCOM Power, Inc., a leading provider in solar and battery solutions.
GCP is set to provide Hybar with around 40% of its total annual power needs once both companies are fully operational in 2025. This will ensure that, under the right conditions, Hybar and its customers can be confident that the energy used at the mill comes from 100% renewable sources, helping Hybar meet the needs of clients with ambitious net-zero goals. The renewable energy supplied by GCP will supplement Hybar’s existing power agreement with Entergy Arkansas for grid electricity. By using 100% recycled scrap metal and accessing a large supply of renewable energy, Hybar will be positioned as one of the steel producers with the lowest, if not the lowest, scope 1 and scope 2 emissions globally.
Ari Levy, Partner at Global Principal Partners and CFO of both GCP and Hybar, commented, “Unlike other industrial businesses which seek to invest in renewable power generation projects hundreds of miles away from their closest operation as a means of carbon offsetting, GCP’s production of solar and renewable-stored energy will be directly connected to Hybar. To our knowledge, this will be the first renewable power installation in the industry to provide a steelmaking facility with solar-generated electricity on a behind-the-meter basis. Access to renewable energy was a major component of Hybar’s mission and we appreciate the commitment of KfW IPEX- Bank, ATRS and the investment group that supported Hybar as we launch Green & Clean Power.”
GCP will begin the process of applying for interconnection with the Midcontinent Independent System Operator (MISO) grid system. This process is expected to take around three years. Once connected to the grid, GCP will be able to sell its solar-generated and battery-stored electricity to third-party customers. |
