Longroad Energy, a U.S.-based renewable energy developer, owner, and operator, and Black Stone Minerals, L.P., announced a multi-year transaction to promote the development of renewable energy.
The terms provide Longroad with exclusive access to several thousand Black Stone acres across 12 states for potential large-scale solar development while preserving Black Stone's ability to co-develop its mineral and subsurface rights. This is a seminal agreement and first of its kind for both Black Stone and Longroad.
"We are pleased to broaden our relationship with Longroad, which began with a mineral transaction as part of their Umbriel Solar project in Polk County, Texas," said Fowler Carter, Director of New Ventures from Black Stone Minerals. "The Longroad team has ambitious goals focused on developing renewable energy projects on surface rights, a strategy that is complementary to our holdings. This unique transaction allows Black Stone to optimize our assets, giving us exposure to the attractive utility-scale solar market, while at the same time preserving our underlying mineral rights."
"As Longroad continues to scale our development efforts, this arrangement with Black Stone provides a dual avenue to rapidly expand our portfolio and reduce execution risk," said Adam Horwitz, VP of Origination and Development at Longroad Energy. "The certainty and structure afforded by this agreement will allow Longroad and Black Stone to transact efficiently and repeatedly. We look forward to working closely with the Black Stone team to deliver a new renewable energy value stream to their existing portfolio."
The agreement applies to regions where Longroad has a proven track of solar development as well as new areas the company has targeted for expansion.
