Flatiron Energy has secured approximately $850 million in construction and term financing commitments for the Energizar battery project in Chelsea, Mass.
The standalone energy storage project will be the largest on the East Coast and one of the largest urban battery energy storage systems globally, designed at 1,200 MWh.
Commercial operations for the Energizar project are pegged for the fourth quarter of 2027, said Flatiron Energy. Once online, the facility will provide critical peaking capacity and reliability resources for the Boston metropolitan area grid, helping to offset local reliance on fossil-fuel-fired generation.
The financing commitments span construction and bridge loan facilities, term loan facilities, letter of credit facilities, a preferred equity commitment, and a tax credit transfer commitment.
The debt facilities were provided by a consortium of financial institutions, with Nord/LB, Santander, and Societe Generale serving as coordinating lead arrangers; Investec and East West Bank acting as joint lead arrangers; and Siemens Financial Services participating as a lender. East West Bank served as depositary, while Santander acted as administrative agent.
A premier global credit asset manager with more than $350 billion in assets under management provided the preferred equity commitment, and two Fortune 500 corporations committed to transfer a portion of the project’s investment tax credits (ITCs).
Orrick, Herrington & Sutcliffe LLP and Foley Hoag LLP represented Flatiron Energy. Winston & Strawn LLP and Rath, Young and Pignatelli, P.C. represented the lenders.
CCA Capital LLC advised Flatiron on the preferred equity investment and tax credit transfer, while Riverside Risk Advisors acted as hedge advisor to Flatiron for interest rate hedging activities. Raymond James Renewable Energy Investments advised the tax credit purchasers.
From pv magazine USA
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