Key Capture energy, leading developer, owner and operator of storage projects, has secured $93.3 million in financing for a portfolio of six storage projects in Texas, the company announced this Thursday.
Firstly, combined, the projects amount for a total of 230 megawatts of storage capacity; secondly, three of the six projects are already operational, while the remainder will come online by year’s end.
Thirdly, CIT Group, Siemens Financial Services and Rabobank provided the financing, which consists of a construction-plus-five-year term loan and letters of credit. On the one hand, Clean Energy Counsel and Norton Rose Fulbright served as lead legal advisers on the transaction.
On the other hand, Mitsubishi Power Americas, Inc. and Powin Energy Corporation will provide system integration services for the whole 230 MW portfolio.
These new projects for Key Capture Energy will add to a 20 MW battery energy storage project, currently operating in New York; and also, to a 30 MW of operating projects in Texas; in addition to further 200 MW under construction for the state.
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Key Capture Energy with projects in New York and Texas
Consequently, Jeff Bishop, CEO of the company, said: “this was a particularly complex financing; three projects under construction and also three in operations; two different system integrators, and two unique battery types. In addition, all backed by three offtake counterparties.”
“Moreover, Key Capture Energy was the first company to build standalone storage projects in Texas that where not just performing fast frequency response,” he underlined; while also saying.
“We approached Texas like we do in all markets: starting small with 10 megawatt projects; and also using that experience to get to scale, as we now are constructing projects ranging from 50 – 100 megawatts. It is truly an exciting time to be working on the frontlines of the clean energy transition.”
In addition, the company will soon issue a next project debt RFP for additional 250 MW for Texas, which will be online during 2022.
Finally, Mike Lorusso, managing director and group head of CIT’s Power and Energy business, said. “Battery storage is an increasingly important contributor to the growth of clean energy across the U.S. We are pleased to work closely with Key Capture Energy Capture to help meet their financing objectives.”