Energy Transition
O’Melveny helps clients navigate the complexities of the new energy transition environment.
A Perfect Storm Battered the Offshore Wind Industry in 2023: Is Fairer Weather Ahead?
O’Melveny helps clients navigate the complexities of the new energy transition environment.
A Perfect Storm Battered the Offshore Wind Industry in 2023: Is Fairer Weather Ahead?
The world moves closer to a clean-energy future every day, and our team works with forward-thinking clients to accelerate the transition. As the shift away from fossil-based fuels and toward zero-carbon sources becomes ever more urgent, O’Melveny helps stakeholders—from energy producers and project developers to investors and lenders—take advantage of promising opportunities while adequately addressing risk.
With decades of experience helping clients acquire, develop, construct, and finance clean-energy projects, our practitioners combine an intricate knowledge of renewable energy sectors with a thorough understanding of the latest market developments, including the Inflation Reduction Act’s raft of clean-energy incentives. Our track record includes more than 150 renewable energy projects, among them many of the industry’s most complex “first ever” and “largest ever” transactions.
Broad Experience
- Solar
- Wind
- Geothermal
- Ethanol
- Biodiesel
- Biomass
- Hydroelectric
- Nuclear
- Waste to energy
- Liquefied Natural Gas
- Carbon Capture and Sequestration
- Blue/Green Hydrogen
Comprehensive Service
- Full range of financing documentation
- Project acquisition, development, and construction
- Offtake and Engineering, Procurement and Construction (EPC) agreements
- Joint ventures and other ownership structuring agreements, including undivided interest structures and royalty arrangements
- Corporate and tax counseling, including advising on the Inflation Reduction Act (IRA)
- Restructuring
Pioneering Work
We represent some of the world’s largest banks and investment banks in their financing activities in the clean energy space, including through tax equity and various debt structures. Some of our notable work has included:
- The first-ever leveraged lease financing of a wind power project
- The first-ever leveraged renewable energy project to use Treasury grants in lieu of Investment Tax Credits (ITCs)
- The largest-ever geothermal project financing
- The largest-ever equity investment in a wind power project
- The largest solar project completed in the US in the last 15 years
- One of the largest-ever energy projects to use a PAYGO structure
- The first-ever wind power transaction financed by institutional equity investors
Advising Aera Energy, one of the largest producers of oil and gas in California, on its negotiation with a third party to develop and construct a carbon capture and sequestration project in California, including negotiation and documentation of CO2 offtake agreements and issues relating to eligibility for and assignment among the parties of carbon capture and storage credits.
Counseled Cormint on the acquisition of a wind farm in Texas (and related agreements, including land use and interconnection/facilities agreements) for the purpose of using the farm’s electrical infrastructure to power bitcoin mining operations.
Guided CS Energy in its negotiation of the sale of five solar projects being developed in New Jersey. Four of the projects will be sited atop landfills; before closing on the sale, CS Energy’s EPC team will perform the work to cap the landfills under agreements with the local municipalities. When the projects close, CS Energy will also enter into EPC contracts with the buyer for CS Energy to construct the projects.
Advised on contract structuring and documentation for a proposed CO2 capture and sequestration project, which will capture the CO2 from ethanol production facilities. The joint venture partners include the owner of the ethanol facilities and an E&P company, and will seek Section 45Q tax equity financing for the project.
Assisted Mitsui on its investment in LanzaJet, a company that will produce and sell sustainable aviation fuels, as well as a subsequent secured loan to a project company owned by LanzaJet that is developing a sustainable aviation fuel project in Georgia. LanzaJet is a spin-out from LanzaTech, which has spent the last 15 years developing technologies that can turn carbon emissions into ethanol suitable for chemical and fuel uses. O’Melveny also provided merger control advice related to Mitsui’s shareholding interests in LanzaJet.
Helping MPS Infrastructure, an independent energy project development company, in the development and project financing of water infrastructure and related clean energy facilities in North Africa and in an LNG-fired generation facility in East Africa.
Assisted Silevo, a solar photovoltaic cell technology innovator that manufactures high-efficiency, high-performance solar modules, in its acquisition by Elon Musk’s SolarCity Corporation.
O’Melveny is a leader in the renewables financing sector. As counsel to some of the largest banks and financial institutions in the world investing in energy transition projects, we have handled the following matters:
- Advised financial institution on the tax equity financing of a solar project in California.
- Advised financial institution on its project financing of, and preferred equity investment in, a 230 MW multi-phase solar and battery storage project in California, two wind power projects located in the Catskills region of New York State, a 303 MW wind farm project in Oklahoma, and a 302.4 MW wind energy project in Indiana.
- Represented financial institution in the closing of the first phase of its tax equity financing in a portfolio of seven wind, solar and energy storage projects being developed by one of the largest strategic developers of renewable energy projects in the world. The first phase included an approximately 76.5 MW solar energy project located in Maine, and an approximately 100 MW solar energy project located in Wisconsin. The portfolio includes additional projects across the country located in Oregon, California, New Mexico, Colorado, and Iowa—with a total Fair Market Value expected to exceed $1.1 billion.
- Represented financial institution and a syndicate of lenders in the construction and term financing of a solar photovoltaic power plant, with an electric generating capacity of approximately 300 MW AC, and related structures, facilities, parts and interconnection facilities situated in Ohio.
- Advised investment bank on a 145 MW wind power project in Colorado.
- Represented financial institution in its purchase of ownership interests in a holding company that owns and operates three wind power projects in Texas. Additional projects for this client, which has invested more than $10 billion in renewable energy tax-equity projects, have included:
- Tax equity financing of a wind project in Iowa.
- Tax equity financing of a portfolio of eight wind, solar, and energy storage projects.
- Preferred equity investment in, and project financing of, two wind power projects located in North Texas.
- Project financing of, and preferred equity investment in, a 230 MW energy storage project in California.
- Preferred equity investment in, and project financing of, a portfolio of wind and solar projects located in Texas and New Mexico.
- Preferred equity investment in, and project financing of, a 70 MW wind project in Iowa.
- Preferred equity investment in, and project financing of, six solar and storage projects.
O’Melveny’s energy group shines with “the expertise, firepower and bench to handle any situation.”
—Client Testimonial, Chambers Global
“The renewable energy practice at O’Melveny & Myers LLP comprises energy-focused practitioners with significant experience in project development, energy transactions, and regulatory matters at the federal and state level.”
—The Legal 500 US
O’Melveny “offers clients a strong bench of capable project finance and development attorneys with a wide range of skills.”
—Chambers USA