Lightsource BP, a 50:50 joint venture with BP, has successfully closed on a $250 million financing package for its Impact Solar project located in Lamar County, Texas, 120 miles northeast of Dallas.

The energy generated by the 260 MW project will be traded through a long-term agreement with BP.

Dev Sanyal, incoming EVP Gas and Low Carbon Energy, BP said the project demonstrates that the competitiveness of solar energy means that power offtake structures widely and historically used for conventional generation are now gaining traction for solar energy projects.

“We see an exciting future from the increase in competitive renewable energy in the US power markets, and opportunities to integrate this with trading and customer capabilities.”

The project is expected to create almost 300 jobs in construction, operations, maintenance and asset management. In addition, generation from a project of this size and type would typically be expected to provide clean, cost-effective energy for the equivalent of more than 34,000 homes in the Texas market and provide an offset of 268,675 metric tonnes of greenhouse gas emissions each year, comparable to taking over 57,000 fuel-burning cars off the road.

Construction of the project has started with commercial operation expected by the end of 2020. Construction is being undertaken by Swinerton Renewable Energy, who is building commercial facilities and renewable energy projects across the US and has a long and successful track record of building projects in Texas.

Lightsource BP and project investors will fund an estimated $250 million into the solar plant. The senior debt facility for the project was provided by HSBC Bank USA, N.A. (HSBC) and National Westminster Bank PLC (NatWest).

Lightsource BP’s ambition is to deliver 10 gigawatts of solar capacity by 2023.