Nova Clean Energy, a Chicago-based renewable energy developer backed by Bluestar Energy Capital, is considering launching a capital raise and has been in talks with potential sellside advisors, the firm’s CEO told Infralogic.

Nova, which has a 5 GW pipeline of wind, solar and storage, plans to raise additional capital both to tap into opportunities in the M&A market and build out its platform, CEO Ben Pratt said. Though the firm’s pipeline is roughly an even mix of wind and solar, Nova plans to focus more heavily on wind projects as the developer aggressively pursues M&A opportunities.

“We feel like it could be an opportune time to raise capital,” Pratt said. “And the fact that we are a wind-focused platform, we feel like we are differentiating ourselves from a lot of the crowd because of that.”

Pratt expects to retain a banker in the next few weeks and aims to close some kind of a capital raise by the end of 2024, though the structure and details are still undecided.

This week, Nova brought on Dylan Reeves to serve as Senior Vice President of Commercial Operations for the firm to lead its M&A as well as procurement, construction, and asset management, Nova announced 21 February. Reeves joins from Bluestar Energy Capital, where he served as head of commercial operations.

“We are in a position now where we need Dylan’s expertise inhouse with M&A, and also his overall wind background as we continue to grow our pipeline and develop these projects,” Pratt said. “The development and evolution of our greenfield pipeline is getting more mature. We are getting into a different phase of the greenfield, where we need more help in moving those forward.”

Reeves joined Bluestar when the firm was founded in March 2022. Before joining Bluestar, he spent nearly 14 years with GE Renewable Energy. He previously served as Cavalry Officer in the US Army after graduating from the United States Military Academy at West Point.

Nova’s 5 GW pipeline comprises roughly 40% wind, 40% solar, and 20% storage, Pratt said. Around 500 MW will reach notice to proceed (NTP) stage in 2025, he said, with another 2 GW reaching NTP in 2026.

The earliest projects will reach commercial operations in late 2026 and 2027.

Pratt said that the M&A market has gone from a sellers’ to a buyers’ market over the past 18 months, creating opportunities. And while wind has been somewhat forgotten amidst a slew of solar and storage opportunities – Pratt estimates 90% of the M&A flow – he believes the value is still strong for the right wind assets.

“It is definitely harder [than solar],” he explained. “It takes a lot more time and effort and scale to develop wind, but we feel like the payoff will be a lot greater in the long run.”

“We’ve seen this movie before,” he continued. “As solar penetrates markets, the value of wind goes up.”