Strata Clean Energy Secures financing for 1 GWh BESS project in Arizona
Published by Theodore Reed-Martin,
Editorial Assistant
Energy Global,
Strata Clean Energy (Strata), a leading developer, owner, and operator of renewable energy projects, has closed on US$559 million financing for the construction and ownership of the Scatter Wash battery storage complex. The 255 MW/1020 MWh storage facility broke ground on January 18 and is expected to be operational by April 2025.
A consortium of leading financial institutions collaborated to secure the necessary funding for this project. J.P. Morgan and Nomura acted as Coordinating Lead Arrangers and Joint Bookrunners. J.P. Morgan also fulfilled roles as Administrative Agent, Depositary Agent, and Collateral Agent. The financing was further supported by U.S. Bancorp Impact Finance and CoBank as Coordinating Lead Arrangers with The Korea Development Bank and Norddeutsche Landesbank as Joint Lead Arrangers. Furthermore, Siemens and Regions contributed as lenders in this transformative project, and US Bancorp Impact Finance was also the primary tax equity investor.
"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,” said Markus Wilhelm, CEO of Strata 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."
“J.P. Morgan is working to provide capital to accelerate the growth of sustainable infrastructure nationwide,” commented John Beebe, Executive Director, J.P. Morgan Green Economy Banking. “We’re very pleased to work alongside Strata to decarbonise our communities and build a more resilient energy future.”
“US Bancorp Impact Finance is thrilled to expand an already fruitful relationship with Strata Clean Energy by deploying debt and tax equity to meet our customer’s demand for this exciting project,” added Impact Finance Chief Investment and Product Officer Sunil Rajpurohit. “We believe everyone has a role to play in creating a sustainable future and look forward to the potential impact this project will have in Arizona.”
The Scatter Wash battery storage complex will store enough electricity to power 50 000 Arizona homes during peak summer conditions for 20 years, aiding grid stability and streamlining the incorporation of renewable energy sources in Arizona, thereby advancing economic growth and environmental sustainability. In May 2023, Strata forged a 20-year tolling agreement with Arizona Public Service, cementing its commitment to this groundbreaking initiative.
Read the article online at: https://www.energyglobal.com/energy-storage/22022024/strata-clean-energy-secures-financing-for-1gwh-bess-project-in-arizona/
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