Certain funds managed by affiliates of Apollo Global Management made a structured investment in US Wind, an offshore wind energy development company. The Apollo funds committed to invest through convertible debt and equity up to $265 million to acquire an equity stake in US Wind and fund development and construction costs associated with an offshore wind energy project off the coast of Maryland.
Baltimore, MD-based US Wind controls the Maryland Wind Energy Area under a Bureau of Ocean Energy Management (BOEM) lease of approximately 80,000 acres located 10 to 30 miles off the state’s coast, an area that is sufficient to install an estimated 1.3 GW of renewable power generation. The first phase of the project will have a capacity of 270 MW, enough to power more than 75,000 Maryland homes. US Wind plans to sell electricity and Offshore Wind Renewable Energy Credits under the Maryland Offshore Wind Energy Act of 2013, and the project is poised to be a contributor of renewable energy required under Maryland’s Renewable Portfolio Standard. Anticipated to come online in early 2024, the project has a more than 25-year useful life and is expected to create thousands of jobs.
“US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the U.S. and abroad, as interests coalesce around clean energy,” Geoffrey Strong, senior partner and co-head of infrastructure and natural resources at Apollo, said. “For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the firm’s strong commitment to sustainability.”
“We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing development of our offshore wind projects,” Riccardo Toto, president of US Wind, said. “Apollo is a creative and dynamic partner with global expertise, and together we believe we can make a positive impact on the energy transition in the United States.”
“We are pleased to work with Riccardo and the entire US Wind team to advance this important project to meet Maryland’s renewable energy goals while creating high-quality jobs and driving significant local investment in the Baltimore area,” Brad Fierstein, principal at Apollo, said.
Apollo-managed funds have invested more than $20 billion in infrastructure-related opportunities across its platform. Apollo’s infrastructure business, which is currently investing out of its second dedicated infrastructure fund, focuses primarily on opportunities in power and renewables, communications, midstream energy and transportation. The Apollo infrastructure platform is led by Dylan Foo and Strong as senior partners.
