Plus Power has obtained $1.8bn in fresh funding to build five energy storage projects totalling 1.04GW/2.76 gigawatt-hours (GWh) across the US states of Arizona and Texas.
The financing, which is being provided by 11 lenders and investors, will support Plus Power in both the construction and operation of the portfolio.
It will also help the company build three battery projects totalling 700MW to support the Electric Reliability Council of Texas grid in Texas. The three projects will be executed with funds totalling $884m.
For the 300MW/600 megawatt-hour (MWh) Rodeo Ranch energy storage facility in Pecos, Plus Power secured $212.2m in tax equity financing from Foss & Company along with $276m in construction and term financing.
For the 200MW/400MWh Ebony energy storage facility in Comal County near San Antonio, Texas, the company secured $196m in construction and term financing.
For the 200MW/400MWh Anemoi energy storage facility in Hidalgo County, $200m in construction and term financing was provided.
The three projects in Texas are expected to begin operations by summer 2024.
Financing of $707m was provided for one of the two projects in Arizona, the 250MW Sierra Estrella energy storage facility in Avondale. This is the company's largest stand-alone energy storage project and will occupy 11 acres of land.
The second project in Arizona is the 90MW/360MWh Superstition energy storage project in Gilbert, near Phoenix. For this project, the company secured $196m in construction funds, a term loan and a letter of credit facility.
Plus Power chief financial officer Josh Goldstein stated: “Over the last year, Plus Power has raised an unparalleled amount of capital for stand-alone storage projects from a wide range of leading energy project finance banks and investors.
“This capital will support the ongoing buildout of the largest and most diverse portfolio of stand-alone storage projects in the US. The scale highlights our first-mover advantage in bringing high-quality projects to market as well as the tremendous work by our fantastic team.
“We deeply value our financing partners who support the construction and operation of our wide portfolio across the US, enabling decarbonisation and the transition to a more efficient grid.”
For the Texas portfolio, Plus Power secured financings from lenders including Deutsche Bank, First Citizens Bank and Siemens Financial Services.
To execute the Arizona portfolio, funding was secured from Norddeutsche Landesbank and Société Générale as coordinating lead arrangers. Mizuho, US Bank, the Bank of America, CoBank and Siemens Financial Services served as joint lead arrangers.
