Canadian Solar secures $50mn for 100.1 MWp Argentinian solar project
Canadian Solar has secured $50 million in non-recourse project financing for its 100.1 MWp solar power project in Cafayate, Salta Province, Argentina.
The US$50 million non-recourse financing package, arranged by CAF - Development Bank of Latin America, consists of a US$30 million CAF A-loan with a 15-year tenor, a US$15 million parallel loan from the Argentinian Development Bank of Investment and Foreign Trade (BICE) with a 15-year tenor, and a US$5 million parallel loan from the Bank of the City of Buenos Aires (Banco de la Ciudad) with a 10-year tenor.
CAF and Canadian Solar have a financing target of US$75 million, and are seeking an additional US$25 million in senior financing which is expected to close in early 2019.
Canadian Solar's Cafayate Project is financed under the RenovAR program. The program was launched in 2016 to increase energy from renewable sources to 20% of the national electricity energy consumption by 2025. The program comprises 20-year U.S. dollar Power Purchase Agreement (PPA) with indexation, fiscal incentives for investment in projects, and a three-level guarantee mechanism, including a World Bank guarantee and the Argentina's government guarantee through the Trust Fund for Renewable Energy (FODER).
The Cafayate solar project was awarded a U.S. dollar indexed PPA of US$56.28/MWh during the second renewable public tender (RenovAR 1.5).
The solar project is currently under construction and is expected to reach commercial operation in the second quarter of 2019. Approximately 289,800 Canadian Solar's high efficiency MaxPower CS6U-P 345W modules will be installed. Once energized, the power plant will generate around 239,696 MWh of electricity per year, which will be sold to CAMMESA, the national wholesale power market administrator and clearinghouse.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, "We are delighted to secure high-quality, long-term financing of up to 15 years which is a testament to the success of the Argentina government and the World Bank in designing a robust RenovAR program. The program is expected to attract US$15 billion in renewable energy investments over the next decade in Argentina. We value our partnership with leading financial institutions across Argentina and Latin America to promote the growth of clean renewable energy in the region."
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.