On.Energy has raised US$100 million in project financing from UK fund SDCL Energy Efficiency Income Trust plc (SEEIT) for its US and Canada energy storage project deployments.
On.Energy, which has to-date mostly provided commercial & industrial-sited (C&I) battery energy storage systems (BESS), announced the financing deal with SEEIT today (16 August).
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The conditional financing commitment from the listed investment vehicle, which is managed by Sustainable Development Capital, will accelerate the deployment of On.Energy’s solutions across the US and Canada, the company said.
SEEIT is initially providing a US$10 million convertible loan including an initial US$5 million drawdown, alongside the US$100 million commitment.
Commenting on the financing from SEEEIT, On.Energy CEO Alan Cooper said: “On.Energy has a proven track record of delivering fully integrated battery energy storage solutions to our customers. This investment, which is our first from a major institutional investor, demonstrates the confidence shown by SEEIT in supporting our projects and validates the tireless efforts of our employees, investors, and management team.”
On.Energy has delivered 30-plus BESS projects to-date across various C&I locations such as airports, hotels, retailers, plastics, and power generation in North, Central and South America, and claims a total project pipeline of nearly 2.5GWh. It has headquartered in Miami but also has offices in Texas, Mexico and Peru.
It also provides long-term operation and maintenance (O&M) services on its BESS projects. A majority of the projects listed on its site are behind-the-meter (BTM), for which load shifting, backup power, peak shaving, reactive power compensation and tariff changes are cited as use cases. Most of its listed front-of-meter projects provide frequency regulation services to the grid.
One of these is in Puebla, Mexico, and was the first in the country to do so when it was delivered in 2019. David Fernandes, then country manager Mexico and now group CFO, spoke to Energy-Storage.news in January last year about the country’s growing need for BESS projects.
It has also worked closely with the renewables arm of Italy-based energy company Enel X, co-developing at least two projects to-date, and has used batteries provided by China-based CATL for at least one project.