Tierra Seca and Seven Flags will contribute more than 200MW/400MWh of storage capacity to the ERCOT grid. Credit: sommart sombutwanitkul/Shutterstock.

Spearmint Energy has successfully closed financing of more than $250m for two battery energy storage systems in the US state of Texas.

The projects, Tierra Seca and Seven Flags, each have a capacity of 100MW/200 megawatt hours (MWh) and are currently under construction in Del Rio and Laredo respectively.

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The package includes $59m in construction-to-term loan facilities from Manulife, $95m in tax equity bridge loan (TEBL) facilities from East West Bank and Investec, and $98m in tax equity commitments from Sugar Creek Capital.

East West Bank and Investec coordinated the TEBL facilities, with Investec as the administrative agent and East West Bank as the collateral agent and depository bank.

Spearmint founder, president and CEO Andrew Waranch stated: “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.”

The MA Mortenson Company is handling the construction of both projects.

The projects will use the PowerTitan 2.0 energy storage platform from Sungrow Power Supply.

Tierra Seca and Seven Flags will contribute more than 200MW/400MWh of storage capacity to the Electric Reliability Council of Texas (ERCOT) grid, aiming to provide reliable and affordable power across the state.

Both projects will commence operations towards the end of 2025.

Legal representation for the financing was provided by Paul Hastings for Spearmint, Day Pitney for Manulife, Milbank for East West Bank and Investec, and Leverage Law Group for Sugar Creek.

Spearmint chief financial officer Cory Magnuson stated: “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.”