Property, Plant and Equipment

6 Months Ended

Jun. 30, 2025

Property, Plant and Equipment [Abstract]

Note 8. Property, Plant and Equipment

Property, plant and equipment, net consists of the following:


(in thousands)	June 30, 2025		December 31, 2024
Land	$	23,083	$	23,283
Plant and equipment	1,866,778		1,873,801
Construction in progress	627,439		437,335
Asset retirement cost	31,697		32,640
Finance right-of-use asset	65		65
Other	962		561
Total property, plant and equipment	$	2,550,024	$	2,367,685
Accumulated depreciation	(135,722)		(135,199)
Property, plant and equipment, net	$	2,414,302	$	2,232,486

The Accumulated depreciation balance as of June 30, 2025 reflects the disposal of the GREC Entity HoldCo and other projects during the quarter ended June 30, 2025, which offset the impact of current period depreciation expense. See Note 3. Acquisitions and Divestitures.

Construction in progress includes $87.1 million and $91.8 million of development costs as of June 30, 2025 and December 31, 2024, respectively.

The following table presents Depreciation expense recorded within Depreciation, amortization and accretion on the Consolidated Statements of Operations for the periods indicated below:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2025		2024		2025		2024
Depreciation expense	$	18,596	$	17,467	$	37,092	$	34,974

Impairment of Long-Lived Assets

During the three and six months ended June 30, 2025, the Company recognized impairment losses of $5.0 million and $17.7 million, respectively. The impairment loss in the three months ended June 30, 2025 is primarily associated with the termination of the development of two solar projects. The impairment loss includes $0.8 million related to a deposit forfeited to an offtaker for damages. The remaining $12.7 million impairment loss recognized for the six months ended June 30, 2025 related to impairments recorded during the first quarter of 2025, associated with (i) two operational wind projects for which the Company determined that the carrying value of the related long-lived assets were no longer recoverable through the projected future operating cash flows of the projects and (ii) six development-stage solar projects for which the Company terminated the development of the projects. The fair value of the assets was determined using a market approach. The impairment loss included $1.6 million related to upfront payments to customers and $0.8 million of capitalized costs to obtain a contract related to the termination of the development of three projects recorded within Other noncurrent assets on the Consolidated Balance Sheets due to the termination of the related PPAs. The impairment losses are presented within Impairment of long-lived assets, net, project termination and other costs in the Consolidated Balance Sheets. The charges were recorded to the Company’s IPP segment.

In addition to the $17.7 million impairment loss, the Company paid a $1.0 million termination fee in association with the termination of a PPA. The termination fee and impairment losses are presented within Impairment of long-lived assets, net, project termination and other costs in the Consolidated Balance Sheets. The charges were recorded to the Company’s IPP segment.

During the three and six months ended June 30, 2024, the Company recognized impairment of long-lived assets of $6.3 million due to a change in state regulations that impacted the earning potential of six projects in one state. The impairment analysis indicated that the projected future cash flows of the projects no longer supported the recoverability of the carrying value of the related long-lived assets. The fair value of the assets was determined using a current replacement cost approach. This charge was recorded to the Company’s IPP segment.

In the second quarter of 2024, the Company reached a settlement with an insurance company of $2.7 million and recorded a gain of $1.7 million within Direct operating costs on the Consolidated Statements of Operations. The Company recorded the gain since the Company did not record a related asset or gain for the proceeds to be received, as those proceeds were not yet considered to be realized or realizable at the time of the damage to the related assets in 2023.

Greenbacker Renewable Energy Co LLC 10-Q