Spearmint Energy has successfully closed more than US$250m in financing for, and has begun construction of, Tierra Seca and Seven Flags, two 100MW/200MWh battery energy storage systems (BESS) located in Del Rio and Laredo, respectively, within Texas’ ERCOT power market.
The financing package comprises, in aggregate, US$59m in construction-to-term Loan facilities (CTL) provided by Manulife, US$95m in tax equity bridge loan facilities (TEBL) provided by East West Bank (EWB) and Investec, and US$98m in tax equity commitments from Sugar Creek Capital.
EWB and Investec served as coordinating lead arrangers, joint bookrunners, and green loan structuring agents for the TEBL facilities, while Investec will serve as administrative agent for the TEBL facilities.
EWB will serve as collateral agent and depository bank for the TEBL and CTL facilities.
Andrew Waranch, founder, president, and chief executive of Spearmint, said: “We are thrilled to secure this financing for Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure.
“As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
Both projects are currently under construction by EPC contractor M.A. Mortenson Company and will use the state-of-the-art PowerTitan 2.0 energy storage platform provided by Sungrow Power Supply Sungrow, a leading global inverter and energy storage system solutions supplier.
Upon completion of construction and commencement of their operations, Tierra Seca and Seven Flags will add over 200MW/400MWh of storage capacity to the ERCOT grid, helping to deliver reliable, affordable and efficient power to homes and businesses throughout Texas.
Cory Magnuson, chief financial officer at Spearmint, said: “Manulife, East West Bank, Investec and Sugar Creek Capital are globally recognised investors with strong expertise in energy and infrastructure.
“We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable and affordable power to the grid.”