Spearmint Energy has already closed financing over $250 million for two large-scale battery energy storage projects in Texas. Together with other funds, this will accelerate the creation of the Tierra Seca and Seven Flags developments. Each of these initiatives are working to drive greater reliability and affordability of power across the state.
Both projects will be powered by Sungrow Power Supply’s advanced PowerTitan 2.0 energy storage platform. Each facility is intended to provide a capacity of 100 megawatts (MW) and 200 megawatt hours (MWh). Collectively, they’ll bring over 200 MW and 400 MWh of storage capacity to the Electric Reliability Council of Texas (ERCOT) grid. Tierra Seca, which is now under construction in Del Rio, and Seven Flags, which is in development in Laredo.
The MA Mortenson Company is the construction manager for both projects, delivering them on time and with operational efficiency. Manulife offers a $59 million construction-to-term loan facility. East West Bank and Investec serve as joint leads for the Term Energy-Based Loan (TEBL) facilities. Leading the syndicate as the administrative agent for these facilities is Investec. Simultaneously, East West Bank becomes the collateral agent and depository bank. On top of that, Sugar Creek Capital has signed on to provide $98 million in tax equity for the projects.
Andrew Waranch, Spearmint Energy’s chief development officer, called being able to get this financing a “game-changer.”
“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.” – Andrew Waranch
Cory Magnuson, another Spearmint spokesperson, trumpeted the value of their partnerships with high caliber financial institutions.
“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.” – Cory Magnuson
The ERCOT grid’s capacity will get a very large increase by completing Tierra Seca and Seven Flags. Besides keeping Texans happy and healthy, these projects will be essential in meeting Texas’s growing demand for energy. As renewable energy sources continue to expand, such battery storage systems are vital for stabilizing energy supply during peak usage times.