Renewable energy developer, financer, and operator Pine Gate Renewables has closed on a $288 million preferred equity investment with funds affiliated with Blackstone Credit and Insurance (Blackstone) supporting six solar projects in two states totaling 780 megawatts (MW) of capacity. All six of the projects are backed by corporate offtake agreements, per Pine Gate.
According to Pine Gate’s executive vice president for structured finance Meghan Comiskey, this marks her company’s first preferred equity investment, a significant milestone for the enterprise.
“A multi-portfolio transaction with the exceptional partnership of Blackstone enables us to scale our business efficiently,” she said.
“Pine Gate is a high-quality developer with a strong track record and we look forward to growing our partnership with them. This transaction is emblematic of our differentiated origination and structuring capabilities in the energy transition sectors,” added Zach Rubenstein, managing director at Blackstone Credit & Insurance.
To date, Pine Gate has racked up more than $7.3 billion in project financing and capital investment, including the largest venture capital deal of 2024. In April, Pine Gate closed on a $650 million investment from Generate Capital, the Healthcare of Ontario Pension Plan (HOOPP), and Australian super fund HESTA. The investment will support the financing of an incremental 3 gigawatts (GW) of clean energy infrastructure by 2025.
Pine Gate has more than 6 GW of projects in development in Texas, where everyone seems to clamoring for capacity amidst unprecedented load growth. Back in May, Pine Gate and Meta executed an agreement for the renewable attributes from a Pine Gate solar project located in Temple, Texas. The 204 MW Limewood Bell Solar Project in Bell County is expected to be operational in 2026 and is conveniently located just seven miles from Meta’s Temple Data Center.
Total corporate funding is down overall this year compared to last, according to a recent report from Mercom Capital Group, Solar Funding and M&A – 2024, Third Quarter and Nine Month Report. Including venture capital funding, public market, and debt financing, there were $22.3 billion of transactions through the first nine months of the year, 23% less than the $28.9B raised through September of 2023.
Giving back
The Asheville, North Carolina Pine Gate says a third of its workforce was impacted by Hurricane Helene, prompting the developer to launch a new philanthropic and community giving program, the Pine Gate Renewables Community Impact Fund. Before the end of this year, the fund will dole out $250,000 to eligible nonprofits working in communities within the Hurricane Helene FEMA Major Disaster Declaration areas. Pine Gate has pledged to match every dollar donated to the fund in 2024, doubling the impact of each dollar donated by corporate and private partners.
“We are committed to supporting the communities where we live, work, develop, and operate renewable energy projects,” said Ben Catt, CEO of Pine Gate Renewables. “Our commitment to the affected communities is, and will remain, unwavering. Through the Pine Gate Renewables Community Impact Fund, we can help rebuild and foster resilience.”
For more information and to apply, visit www.PineGateGiving.org.
