Hecate Grid, an independent power producer (IPP) developing utility-scale battery storage assets, has raised US$98.9 million through lenders.
The company said yesterday (7 February) that it secured the credit facility package, which will be used to recapitalise its operational assets and for funding a Southern California portfolio of standalone battery energy storage system (BESS) projects’ construction.
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Hecate Grid was launched as a joint venture (JV) between US developer Hecate Energy and investor InfraRed Capital Partners in 2018, targeting the development, construction, ownership and operation of utility-scale energy storage assets in North America.
In late January, Hecate Energy secured a credit facility package of its own, worth US$550 million. At the time, as reported by Energy-Storage.news, the developer said the borrowing was being collateralised by its pipeline of renewable energy and storage projects.
It would also be collateralised against Hecate Energy’s continued minority equity interest in Hecate Grid, the company said, noting that the financing was secured without credit support and calling its structuring “innovative”.
In an echo of that announcement, Hecate Grid said yesterday that its own financing package has been collateralised against its BESS portfolio and the money was again secured without guarantees or other credit support.
Hecate Grid’s US$98.9 million borrowing comprises a US$79.5 million term-loan, and US$19.4 million letter of credit, over a six-year term. CoBank, Societe Generale and National Bank of Canada took part in the financing.
“Hecate Grid is laser-focused on deploying standalone storage on a scale that moves the meter in our efforts to address climate change and makes our nation’s grids more resilient,” Hecate Grid VP of business development Gabe Wapner said, adding that the transaction was a demonstration of “market confidence”.
The portfolio in Southern California totals 290MWh. It includes three projects under construction in Riverside County totalling 105MW/210MWh, along with the company’s operational Johanna Energy Storage 20MW/80MWh BESS in Santa Ana.
The latter came online in late 2019 and is serving as a pilot project for California investor-owned utility (IOU) SCE to assess how it can use batteries to help match energy supply with demand.
In September, Hecate Grid got key planning approvals and off-take contracts signed for Humidor Battery Energy Storage Project, a 300MW/1,200MWh BESS in Los Angeles County, California, and has previously said it is in the late development stages of a 750MW/1,500MWh BESS portfolio in Texas’ ERCOT market.
Clean energy platform Peregrine Energy Solutions gets backing for next BESS development push
In other North American utility-scale BESS financing news, clean energy development and investment startup Peregrine Energy Solutions has launched a new greenfield energy storage platform backed by an Asian equity investment firm.
The company was founded last year and first featured in Energy-Storage.news in late January, as it acquired two ERCOT projects adding up to 490MW from developer Black Mountain Energy. Peregrine was launched by asset manager Castlelake.
Yesterday, Peregrine said that it has received an investment commitment from South Korea-headquartered alternative asset management firm IMM Investment Global for its new push to develop BESS projects.
Financial terms of the deal were not disclosed. Peregrine Energy Solutions claimed that it has a 6GW pipeline of development opportunities that it unearthed with an apparently proprietary prospecting methodology. That pipeline has “premium earning potential” and Peregrine has site control over the lots, the company said.
Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.