Linea Energy Secures Financing for Major Michigan Solar Farm

SAN FRANCISCO, CA – March 24, 2026 – Linea Energy, a renewable energy developer backed by EnCap Investments, has successfully closed project financing for its Watertown solar project, a 172-megawatt (MWdc) utility-scale facility in Sanilac County, Michigan. The milestone unlocks construction on a project poised to become a significant contributor to the state's ambitious clean energy goals, powering over 25,000 homes and injecting millions into the local economy.

The financing package, which includes a construction-to-term loan and other credit facilities, signals strong investor confidence in Michigan's renewable energy market. The deal was led by Santander Corporate & Investment Banking, with participation from major financial institutions including Société Générale, NORD/LB, and Truist Bank. Now under construction, the project is slated to begin delivering clean power to the grid by April 2027.

Powering Michigan's Green Transition

The Watertown project arrives at a pivotal moment for Michigan's energy landscape. In late 2023, the state enacted a landmark package of clean energy laws, establishing one of the most aggressive decarbonization timelines in the nation. These mandates require utilities to achieve a 60% renewable energy portfolio by 2035 and generate 100% of their electricity from carbon-free sources by 2040.

Central to the project's viability is a 25-year power purchase agreement (PPA) with Consumers Energy, one of Michigan's largest utilities. This long-term contract guarantees a buyer for the electricity generated, providing the revenue certainty needed to secure complex financing. For Consumers Energy, the agreement is a critical step toward its own goals of eliminating coal by 2025 and adding 8,000 MW of solar capacity by 2040. The Watertown facility directly supports this strategy, helping the utility replace fossil fuel generation with a reliable source of clean power.

"With the support of our financing partners and our long-term agreement with Consumers Energy, Watertown will bring meaningful economic benefits to Sanilac County while supporting the state's long-term transition to a resilient, low-carbon grid," said Cassidy DeLine, Chief Executive Officer of Linea Energy, in a statement.

The project also benefits from a regulatory environment designed to accelerate such developments. Recent legislation granted the Michigan Public Service Commission (MPSC) direct siting authority for large-scale renewable projects, a move intended to streamline approvals and ensure a consistent statewide approach to building out the necessary green infrastructure.

The Financial Blueprint for Clean Energy

The successful financing of the Watertown project underscores a powerful trend: the flow of institutional capital into America's green energy infrastructure. The consortium of lenders represents a global commitment to financing the energy transition. Santander, the lead arranger, is a world leader in renewable energy finance, having mobilized billions for green projects globally. Similarly, NORD/LB has a decades-long track record in the sector, financing over 45 gigawatts of clean energy projects worldwide.

"This project underscores the strength of Linea's platform and will deliver long-term value for Michigan communities and the broader renewable energy sector," commented Nuno Andrade, U.S. Head of Structured Finance at Santander Corporate & Investment Banking.

The project's backing by EnCap Investments is also significant. A historically dominant private equity firm in the traditional U.S. oil and gas sector, EnCap launched its multi-billion dollar Energy Transition platform in 2019. Its sponsorship of Linea Energy illustrates a strategic pivot by legacy energy investors, who now see immense growth potential in developing, owning, and operating clean power assets. This shift is crucial for funding the capital-intensive build-out required to meet national and state-level climate targets.

Local Impact: Jobs, Revenue, and Clean Air

Beyond its contribution to the state's energy grid, the Watertown solar project is set to deliver substantial and tangible benefits to its host community in Sanilac County. Construction is expected to create approximately 150 jobs, providing a near-term economic stimulus to the region.

Over the long term, the financial impact will be even more pronounced. Linea Energy projects that the facility will generate $16.4 million in local property tax revenue over its first 20 years of operation. This new, consistent revenue stream will support essential public services, with earlier economic studies indicating that millions will flow directly to local school districts, the county, and township operations. Furthermore, Watertown Township was awarded a $750,000 grant tied to the project, with funds designated for community enhancements like a new pavilion and accessible playground equipment.

Environmentally, the project is expected to power 25,126 Michigan homes annually and reduce carbon emissions by nearly 148,389 pounds each year. This displacement of fossil fuel-based generation is a direct contribution to cleaner air and a more resilient regional environment.

A Growing Portfolio and a Stable Grid

Watertown marks the third major project for which Linea Energy has successfully secured financing, cementing its status as a rapidly growing independent power producer. The company previously closed financing on the 109 MWdc Pineview Solar project in Georgia and the 235 MW Duffy Battery Development in Texas, demonstrating a versatile and effective strategy across different technologies and markets.

Once operational, the Watertown facility will feed its electricity into the Midcontinent Independent System Operator (MISO) market. MISO manages the high-voltage transmission grid across 15 states, including Michigan, and parts of Canada, ensuring reliable power delivery to millions. The addition of 172 MW of solar capacity provides a predictable daytime power source that helps diversify the region's energy mix and supports the integration of intermittent renewables. As Michigan continues its path toward 100% clean energy, projects like Watertown are the foundational building blocks for a modern, decarbonized, and resilient power grid.