Spearmint Energy has closed more than $250 million in financing and commenced construction on two grid-scale battery energy storage systems (BESS) in Texas, the company said on Thursday.
The projects—Tierra Seca in Del Rio and Seven Flags in Laredo—will each have a capacity of 100MW/200MWh and operate within the Electric Reliability Council of Texas (ERCOT) power market. Once operational, the projects will contribute a combined 200MW/400MWh of energy storage capacity to the state’s grid.
The financing package includes $59 million in construction-to-term loan facilities (CTL) from Manulife, $95 million in tax equity bridge loan facilities (TEBL) from East West Bank and Investec, and $98 million in tax equity commitments from Sugar Creek Capital.
East West Bank and Investec served as coordinating lead arrangers, joint bookrunners, and green loan structuring agents for the TEBL facilities. Investec will act as administrative agent, while East West Bank will serve as collateral agent and depository bank for both CTL and TEBL facilities.
“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,” said Andrew Waranch, Spearmint’s founder, president and chief executive.
Construction of both projects is being carried out by M.A. Mortenson Company, with systems integrating the PowerTitan 2.0 platform provided by Sungrow Power Supply, a global supplier of inverters and energy storage solutions.
“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,” Waranch added.
The financing partners are recognized for their expertise in energy and infrastructure investment. Cory Magnuson, Spearmint’s chief financial officer, said the support reflects confidence in the company’s long-term role in the sector.
“Manulife, East West Bank, Investec and Sugar Creek Capital are globally recognised investors with strong expertise in energy and infrastructure,” Magnuson said. “We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable and affordable power to the grid.”
The projects are expected to enhance grid reliability and flexibility in Texas, where rapid population growth and increasing demand have added strain to the electricity system.
