Strata Clean Energy (Strata) has successfully closed on a US$559 million financing deal for the construction and ownership of the Scatter Wash battery storage complex in Arizona, heralding a significant milestone in the region's renewable energy landscape, the company announced on Monday.
The Scatter Wash facility, boasting a capacity of 255MW/1,020MWh, commenced construction on January 18 and is slated for operation by April 2025, positioning it as a key player in bolstering Arizona's energy infrastructure.
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A consortium comprising leading financial institutions collaborated to secure the necessary funding for this transformative project. J P Morgan and Nomura served as coordinating lead arrangers and joint bookrunners, with J P Morgan additionally assuming roles as administrative agent, depositary agent, and collateral agent.
The financing endeavor also garnered support from US Bancorp Impact Finance and CoBank, who acted as coordinating lead arrangers, alongside The Korea Development Bank and Norddeutsche Landesbank, serving as joint lead arrangers.
Moreover, Siemens and Regions played pivotal roles as lenders in the project, while US Bancorp Impact Finance emerged as the primary tax equity investor.
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Markus Wilhelm, Chief Executive Officer of Strata Clean Energy, underscored the significance of the successful financing deal, stating, “The successful financing for the Scatter Wash battery storage complex marks a significant step forward in our mission to drive the transition to clean energy. This opportunity to collaborate with our financing partners to bring this critical project to fruition will create a lasting, sustainable impact on a region that struggles with grid challenges and extreme heat.”
The Scatter Wash complex is poised to play a crucial role in stabilizing Arizona's power grid, with the capacity to store enough electricity to power 50,000 homes during peak summer conditions for the next two decades.
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In a strategic move to solidify its operational framework, Strata forged a 20-year tolling agreement with Arizona Public Service initiative in May 2023, further cementing its commitment to facilitating the transition towards cleaner, more sustainable energy solutions in the region.
