Spearmint Energy Secures $450M Financing for Texas Battery Storage Project
Spearmint Energy has secured approximately $450 million in financing to fund construction of Red Egret, a 300 MW/600 MWh standalone Battery Energy Storage System in Texas City, Texas.
The financing package consists of three components: a $225 million construction facility, approximately $126 million in proceeds from an investment tax credit transfer commitment, and $96 million in preferred equity investment from Nuveen Energy Infrastructure Credit.
The construction facility was arranged by a consortium of banks led by First Citizens Bank and Investec as Coordinating Lead Arrangers and Joint Bookrunners, with Nord/LB as Joint Lead Arranger and East West Bank as Mandated Lead Arranger. The facility will be repaid when the project reaches commercial operations.
“Through our development of Red Egret, we are working to strengthen reliability and deliver safe, cost-effective power to homes and businesses in Texas City and throughout the Texas Gulf Coast,” said Andrew Waranch, Founder, President, and CEO of Spearmint.
Upon completion in 2027, Red Egret will push Spearmint’s total operating battery capacity beyond 1.5 GWh across four projects. The Florida-headquartered company currently operates 350 MW/700 MWh within ERCOT and maintains an active project development pipeline across the U.S.
Counsel included Paul Hastings LLP for Spearmint, Willkie Farr & Gallagher LLP for the lenders, Skadden, Arps, Slate, Meagher & Flom LLP for the tax credit purchaser, and Milbank LLP for the preferred equity investor.
