Cordelio Power starts operations at 135 MW wind farm in Arkansas with Microsoft
Cordelio Power has launched commercial operations of the Crossover wind farm in Arkansas, securing a 20-year power purchase agreement with Microsoft and closing $811mn in financing from North American banks.
| Sectors | Wind Energy, Onshore |
|---|---|
| Themes | Investments & Transactions, Financing, Project Development |
Energy developer Cordelio Power has announced the commercial operation of the 135-megawatt (MW) Crossover wind farm located in Cross County, Arkansas. This is the first utility-scale wind project to become operational in the state. The project represents a strategic milestone for Cordelio, which aims to expand its presence in the central United States energy market.
A power purchase agreement signed with Microsoft
All electricity generated by Crossover will be sold to Microsoft Corporation under a 20-year power purchase agreement. This contract provides long-term financial visibility for the developer. In addition, the project will generate estimated annual payments of $950,000 to Cross County and over $50mn to local landowners over the life of the site.
The project was built by U.S.-based M.A. Mortenson under a turnkey engineering, procurement and construction contract. The turbines were supplied by Danish manufacturer Vestas Wind Systems, with the V163-4.5 MW model assembled in the United States. Vestas will also be responsible for long-term maintenance under a service agreement.
Financing structured by major North American banks
Project financing was structured with a $375mn construction loan and a $173mn term loan. These loans were provided by Sumitomo Mitsui Banking Corporation (SMBC), Crédit Agricole Corporate and Investment Bank, National Bank of Canada, Royal Bank of Canada, and Bank of Montreal.
In parallel, U.S. Bank contributed equity through a $263mn tax equity investment. The transaction was carried out by U.S. Bancorp Impact Finance, the bank’s environmental impact investment arm.
The project was originally developed by Steelhead Americas, the North American development arm of Vestas, and acquired by Cordelio Power in late 2023. Legal matters related to the acquisition were advised by the law firm Latham & Watkins.
Regional deployment and economic implications
The project marks progress in deploying energy infrastructure in a state previously absent from the U.S. wind energy map. Cordelio stated that Crossover is a step toward additional developments in Arkansas, though no detailed timeline was provided.
According to the published data, the Crossover site will also contribute to local job creation, although the exact number of positions resulting from the site’s operation was not disclosed.
