Developer Flatiron Energy has increased its US$125 million credit facility with certain funds and accounts managed by HPS Investment Partners, to US$250 million.
The company says it will use the credit facility to cover development and construction costs related to its portfolio of approximately 4.5GW/18GWh of utility-scale battery energy storage system (BESS) assets that are currently being developed or constructed.
Additionally, Flatiron’s existing equity capital partner, Hull Street Energy (HSE), has increased its equity commitment to the company. Flatiron believes this positions the company to become a “premier regional IPP” in the Northeast US power market.
In September, Flatiron secured around US$540 million in financing commitments to fund the construction and operation of the 200MW/800MWh Taft BESS project in Uxbridge, Massachusetts.
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The financing commitments totalling US$540 million include construction and bridge loan facilities, term loan facilities, letter of credit facilities, a preferred equity commitment, and a tax credit transfer commitment.
Together, the new corporate capital will enable Flatiron to complete development and start construction on several projects in New England.
It will also support expanding its pipeline in other parts of the Northeast and Mid-Atlantic, which the company claims demands substantial investments in clean battery storage capacity.
Recently, Energy-Storage.news Premium reported that Flatiron commenced initial proceedings to construct a 168MW/672MWh BESS at the site of a former coal-fired power plant located in Bristol County, Massachusetts.
During a recent Town of Somerset Board of Selectmen meeting, Erin Baker, the company’s vice president of development, outlined the company’s plans for the site.
As described in the community presentation, Flatiron plans to build a 168MW BESS called Salt Cod Storage at the site of the former Montaup Power Plant on the west bank of the Taunton River in Somerset, Massachusetts.
Flatiron highlighted its strong history in the Northeast and its relationship with HSE upon announcing its larger credit facility, with Rob Brink, the company’s Chief Financial Officer and Co-Founder, commenting:
“Since Flatiron’s founding, HSE has supported our rapid growth in our core markets, thanks in part to their deep understanding of power markets, especially in Massachusetts and New York. We appreciate HSE’s expanded support and look forward to leveraging our combined expertise and resources to continue our growth.”
