(Credit: Pixabay)Meta, formerly known as Facebook, has entered into a long-term renewable energy purchase agreement with TransAlta Corporation for 100% of the generation from its 200 MW Horizon Hill Wind Power Project, to be located in Logan County, Oklahoma. Under this agreement, Meta will receive both renewable electricity and environmental attributes.
The facility will consist of a total of 34 Vestas turbines with construction expected to begin in Q4 2022 and a target commercial operation date in the second half of 2023. TransAlta will construct, operate, and own the facility. Total project capital is estimated at approximately $290 million to $310 million and is expected to be financed with existing liquidity and tax equity.
Over 90% of the project costs are captured under executed fixed price turbine supply agreements with Vestas and executed engineering, procurement, and construction agreement with Infrastructure and Energy Alternatives ("IEA"). The facility is expected to generate total annual earnings before interest, taxes, depreciation, and amortization ("EBITDA") of approximately $27 million to $30 million including production tax credits. It is expected that Horizon Hill will remain a TransAlta project.
Just last month, ground was broken on a 70-megawatt solar facility in Tennessee that will help Meta reach its renewable energy goals. The McKellar Solar Farm is part of an effort between the Tennessee Valley Authority (TVA), Meta, Jackson Energy Authority (JEA) and Silicon Ranch. The project was first revealed in August 2020 and is expected to be completed by the end of this year. It will have interconnection to the TVA grid facilitated by the JEA distribution system.
