Scottish start-up Renewco in US debut with deal for 2GW solar and storage project pipeline

Scottish start-up Renewco Power has expanded into the fast-growing US clean energy market with acquisition of a 1.5GW pipeline of early-stage commercial-scale PV projects and 500MW of battery storage under development from Virginia-based Beaufort Rosemary.

Financial terms were not made public. The solar projects, which range from 50MW-300MW on an alternating current basis, are to be built in six US states: Alabama, Kentucky, Louisiana, Mississippi, South Carolina, and West Virginia.

Under the deal, the two companies are forming a partnership to jointly develop additional PV and storage sites, with the aim of having 3GW of shovel-ready projects within five years in the US midwest and southeast.

Corran Capital, an investment firm also based in Edinburgh, is supporting Renewco’s US expansion with a new £24m ($28.6m) funding commitment.

Renewco CEO Gavin McCallum noted he had worked together in the US power sector in the early 2000s with Beaufort Rosemary CEO Kevin Casey.

“I have every confidence in our joint ability to create a large and growing pipeline of solar and storage projects in the US,” said McCallum.

Casey added: “With Renewco’s financial backing and significant development expertise, our projects can now be accelerated, and the pipeline expanded. I also welcome their strategic input and look forward to working in a strong partnership with Renewco’s team.”

Renewco is owned by Corran Environmental, a fund managed by Corran Capital. It was launched last September with £24m from Scottish electric utility SSE.

Renewco’s founders include Alan Baker, former CEO of Airtricity-Scotland, and Frans van den Heuvel, former CEO of Solarcentury. McCallum was BP Alternative Energy’s commercial director in Houston from 2006-2008, a period of strong growth in the company’s utility wind business. He also has a background in private equity.