Apollo Global Management will acquire a share in US Wind, an offshore wind energy development company, via an investment of up to $265 million.
"Apollo Funds have committed to invest through convertible debt and equity up to $265 million to acquire an equity stake in US Wind and fund development and construction costs associated with a major offshore wind energy project off the coast of Maryland," Apollo said last Friday.
Baltimore, Maryland-based US Wind controls the Maryland Wind Energy Area under a Bureau of Ocean Energy Management (“BOEM”) lease of approximately 80,000 acres located ten to thirty miles off the state’s coast, an area that is sufficient to install an estimated 1.3 GW of renewable power generation.
The first phase of the project will have a capacity of 270 MW, enough to power more than 75,000 Maryland homes.
US Wind plans to sell electricity and Offshore Wind Renewable Energy Credits under the Maryland Offshore Wind Energy Act of 2013.
Expected to come online in early 2024, the project has a 25+ year useful life and is expected to create thousands of jobs.
Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, 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.”
“We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing the development of our offshore wind projects,” said Riccardo Toto, President of US Wind. “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.”
Watch the recording of World Energy Report's Offshore Wind Webinar "Outlook for Offshore Wind Power: The Frontier of Future Energy."