Key Capture Energy, a leading developer, owner and operator of standalone energy storage projects in the United States, announced the recent closing of $93.3 million financing on its portfolio of six battery energy storage systems located in Texas. Together, these projects represent a total of 230 megawatts (MW) of energy storage capacity. Three of the six projects are currently operational and completion of the remainder is expected by the end of the year. The financing, provided by co-lead arrangers CIT Group Inc. (CIT), Siemens Financial Services Inc., and Rabobank, is comprised of a construction-plus-five-year term loan and letters of credit.
Clean Energy Counsel and Norton Rose Fulbright served as lead legal advisers on the transaction. Mitsubishi Power Americas, Inc. and Powin Energy Corporation are providing system integration services for the 230 MW portfolio of projects.
Jeff Bishop, co-founder and CEO of Key Capture Energy, said, “We are pleased to partner with CIT, Rabobank, and Siemens Financial Services on this important financing and value their support and trust as we execute on our growing pipeline of battery storage projects. While this was a particularly complex financing with three projects under construction and three in operations, two different system integrators, and two unique battery types – all backed by three offtake counterparties – we are immensely proud of the innovation and creativity demonstrated by our lenders in the growing energy storage financing field.”
“Battery storage is an increasingly important contributor to the growth of clean energy across the U.S.,” said Mike Lorusso, managing director and group head of CIT’s Power and Energy business. “We are pleased to work closely with Key Capture Energy Capture to help meet their financing objectives.”
Claus Hertel, managing director at Rabobank, remarked, “Battery storage is becoming increasingly relevant in the energy markets. Through this innovative financing structure, Rabobank is excited to support Key Capture Energy, an energy storage leader, in the build-out of its portfolio.”
“Siemens Financial Services is committed to financing projects that support energy transition, and these six projects will directly lead to a cleaner and more resilient power grid,” said Anthony Casciano, CEO of Siemens Financial Services Inc. “We appreciate the confidence Key Capture Energy showed in us to execute this complex and innovative transaction.”
In addition to a 20MW battery energy storage project operating in New York, Key Capture Energy has 30 MW of operating projects in Texas, with an additional 200 MW under construction. Bishop continued, “Key Capture Energy was the first company to build standalone storage projects in Texas that were not just performing fast frequency response. We approached Texas like we do in all markets: starting small with 10 megawatt projects, and 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.”
Continuing its history of “firsts”, Key Capture Energy will soon issue its next project debt RFP for 250 MW of projects in Texas which are due to be online in the next year, and are also contracted with investment-grade offtakers. This financing is backed by a different hedge construct, and will align timing-wise when the portfolio is anticipated to be operational.