With $250M to invest, Hawthorne Renewables solar firm to launch new Phoenix HQ
A solar development company with ties to Portland is opening a new headquarters in Phoenix and is planning to invest millions of dollars in renewable energy projects nationwide.
Hawthorne Renewables — a spinoff from a merger between Ireland-based Power Capital Energy Group and Sulus Solar of Portland — launched on June 28.
The company, led by Sulus Solar co-founders Colin Murphy and Conor Grogan, is leasing space at the Biltmore Center on E. Camelback Road for its new headquarters, which is expected to open in July, Murphy told the Business Journal.
Hawthorne Renewables aims to invest more than $250 million in solar projects nationwide over the next three to four years. The company is backed by Paris-based Omnes Capital, a green energy private equity firm with $5.2 billion in assets under management.
“We have a history of doing small-scale utility solar projects with Sulus, but with the new backing from Omnes, large-scale utility projects are what we will be developing, building and owning,” Murphy said.
Sulus Solar, a developer of utility-scale solar farms, completed more than $150 million in projects in Oregon and Washington since its inception in 2016. Hawthorne is targeting development of 2 gigawatts in solar assets within five to seven years.
“We brought an existing pipeline of projects with us from Sulus,” Murphy said. “They were based in Oregon, Washington State and some in New Mexico. There’s roughly 50 projects across those three states and we intend to originate new projects in Arizona and Texas.”
The Valley’s growing talent base — particular in engineering and finance fields — was a driving factor in Hawthorne’s decision to open a headquarters in Phoenix, Murphy said.
“Also, it’s geographically in between the markets we’re targeting at the moment,” he added.
Hawthorne Renewables will continue to operate an office in Portland.
The company sees potential to tap into the growing solar market after passage of the Inflation Reduction Act, which is projected to help cut carbon emissions nationwide by 40% by 2030 and drive deployment of 20 gigawatts per year in solar capacity.
“A big part of that is the push for renewable infrastructure. Within that, solar is really adding rocket boosters to the industry, positioning it really well,” Murphy said. “… We’re only targeting 1% or 2% of market share, so the size of the market is just enormous.”
So far, the company hired five employees for its Phoenix office and is intending to increase that number to 20 workers by next year, he said.
“We’re looking forward to growing the team,” Murphy said. “We’re also looking forward to tackling these much larger projects and helping each state meet its renewable targets.”