Absaroka Energy LLC has entered into an agreement securing equity investment capital for its 400-MW Gordon Butte Pumped Storage project from Copenhagen Infrastructure Partners (CIP) in Denmark.
The closed-loop project will be located near Martinsdale, Mt. Absaroka has secured the site and obtained water rights and permits, including receipt of a new major hydro license for the construction and operation of the facility from the Federal Energy Regulatory Commission (FERC). Absaroka Energy says the project will be ready for construction in 2020.
Absaroka Energy was assisted by investment banking advisors Green Giraffe, Bostonia Partners, and Voltiq, according to a press release.
“Montana could be the epicenter of Northwest U.S. energy generation potential when linked with the world class capacity and storage technology deployed at Gordon Butte, adding jobs and a new, long-term and sustainable tax base,” said Carl Borgquist, president of Absaroka Energy. “It only makes sense this project attracted a world class investor like Copenhagen Infrastructure Partners who are funding billions of dollars in renewable energy projects across the globe.”
With this investment, CIP will finalize the project development and step into the role of the project’s long-term sponsor equity provider. The remainder of the capital structure will be determined prior to start of construction.
“At CIP, we focus on teaming with leading developers and making investments in energy infrastructure assets with a high degree of stability in cash flows,” said Christian Skakkebaek, senior partner at CIP. “With the long investment horizon of our funds, it enables us to participate in large projects overseeing financing, construction and operation. Pumped storage hydro is a unique and valuable asset class that will be a key resource as the global transition to renewable energy continues to accelerate in states such as Montana.”
The project will use a quaternary configuration of pump and turbine equipment provided by GE Renewable Energy, allowing the plant to move quickly and seamlessly between pumping and generating, thus creating the most flexible, capable and low-cost capacity, Absaroka Energy says.
CIP is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage.