Large-Scale Direct Air Capture Plant To Be Powered By Solar
STRATOS Direct Air Capture Facility Can Help Reduce Oil And Gas Emissions In Permian Basin
Origis Energy announced the close of financing for the Swift Air Solar project in Ector County, Texas. The US$415 million funding package includes construction, term debt, and tax equity financing from Natixis Corporate & Investment Banking (CIB) and Advantage Capital.
Natixis CIB acted as sole coordinating lead arranger, hedging bank, LC issuer, green loan coordinator, and administrative agent for the US$290 million construction and term debt financing. Advantage Capital is providing US$125 million in tax equity for the project.
Currently under construction, Swift Air Solar will enter commercial production in mid-2025. The project is under agreement with Houston-based Occidental Petroleum (Oxy) and its subsidiary, 1PointFive, to provide zero-emission solar power for the Direct Air Capture (DAC) facility, STRATOS, currently under construction in the Permian Basin. Origis is the builder, owner, and operator of Swift Air Solar.
“This is an exciting project, helping to power the world’s first large-scale direct air capture plant. This directly aligns with our mission to supply decarbonization solutions,” said Vikas Anand, chief executive officer, Origis Energy. “A big thank you to Natixis CIB and Advantage Capital for their partnership on Swift Air Solar.”
The Swift Air Solar funding represents the third transaction for Origis and Natixis CIB. The parties worked together on the Origis US$750 million construction warehouse facility in August 2023 and an upsize of the Origis $750 million development facility in March 2023.
“Natixis CIB is proud to once again partner with Origis Energy on the innovative Swift Air Solar project,” said Nasir Khan, managing director, head of infrastructure & energy finance, Americas at Natixis Corporate & Investment Banking. “This financing, our third with Origis, reinforces our commitment to financing renewable energy solutions that drive the global energy transition. Swift Air’s clean energy contribution to the world’s first large-scale direct air capture plant is a perfect example of the type of innovative and impactful sustainable financing we are dedicated to providing.”
“The Swift Air Solar project highlights what can be achieved when capital, collaboration, and cutting-edge technology come together to drive meaningful impact,” said Tom Bitting, managing director at Advantage Capital. “Investing in transformative renewable energy projects like this aligns perfectly with our mission to drive capital to initiatives that foster economic growth and environmental impact. We are proud to support Origis Energy in delivering this innovative clean energy solution, which contributes to accelerating the clean energy transition.”
Latham & Watkins represented Origis Energy in the transaction. Representation for the lenders included Milbank for Natixis CIB and A&O Shearman for Advantage Capital. Local counsel included Reed Smith for Origis and Husch Blackwell representing Natixis CIB and Advantage.
