Houston renewable energy storage developer secures $1.8B in financing
A Houston company that develops standalone battery energy storage systems has reportedly secured $1.8 billion in new financing for a handful of ongoing projects — most of which are in Texas.
"Over the last year, Plus Power has raised an unparalleled amount of capital for standalone storage projects from a wide range of leading energy project finance banks and investors," Josh Goldstein, CFO of Plus Power, says in a news release. "This capital will support the ongoing buildout of the largest and most diverse portfolio of standalone storage projects in the U.S. The scale highlights our first-mover advantage in bringing high-quality projects to market as well as the tremendous work by our fantastic team."
The funding will be distributed to the following projects, which are expected to have a total of 1,040 megawatts of capacity, according to the release:
- The 250-megawatt Sierra Estrella Energy Storage facility in Avondale, Arizona, west of Phoenix will use $707 million of the financing — $202 million of tax equity and a $505 million construction, term loan, and letter of credit facility from Bank of America. Expected to deliver by summer of next year, the 11-acre facility will be the largest to date for a standalone energy storage project, according to Plus Power.
- $212.2 million of tax equity financing from Foss & Company, as well as $276 million of construction and term financing, for the 300 MW / 600 MWh Rodeo Ranch Energy Storage facility in Pecos.
- $196 million of construction and term financing for the 200 MW / 400 MWh Ebony Energy Storage facility in Comal County, northeast of San Antonio.
- $200 million of construction and term financing for the 200 MW / 400 MWh Anemoi Energy Storage facility in Hidalgo County, on the Mexican border northwest of Matamoros.
- $196 million construction, term loan and letter of credit facility for the 90 MW / 360 MWh Superstition Energy Storage project in Gilbert, southeast of Phoenix.
The $884 million committed to three new standalone storage facilities in Texas bring Plus Power's current ERCOT portfolio to 800 MW. Deutsche Bank and First Citizens Bank were the coordinating lead arrangers, per the news release.
"Plus Power is a market leader in the battery energy storage sector and we are honored to have collaborated with them on these breakthrough financings," Jeremy Eisman, managing director and head of Infrastructure & Energy Financing at Deutsche Bank, says in a statement. "We acknowledge the important role that battery storage plays in ensuring a clean and reliable electric grid and look forward to continuing to support the Plus Power team's continued growth in this sector."
Plus Power's portfolio includes large-scale lithium-ion battery systems across 25 states and Canada. The company reports that three of the projects will be completed before next year's summer heat rolls back in.
Originally founded in San Francisco in 2018, Plus Power moved its HQ to Houston last year. The company recently signed a lease for nearly 7,000 square feet at Three Hughes Landing in The Woodlands. The company previously was based in coworking space at the Rayford Office Park in Spring.