SMT Energy has formed an equity partnership with Climate Adaptive Infrastructure for up to $268 million at the parent-company level to accelerate the development, construction and operation of battery energy storage projects across the U.S.
The new commitment is in addition to $32 million previously deployed by CAI into SMT assets. Combined with project-level debt, tax equity and other capital sources, SMT expects the investment to support energy infrastructure with an aggregate value significantly greater than CAI’s equity commitment.
SMT develops, owns and operates battery energy storage systems. Its portfolio includes distributed-generation battery projects, utility-scale storage projects and powered-land developments designed to support grid reliability and rising electricity demand.
The partnership is intended to provide long-term capital for projects across multiple U.S. markets as battery storage takes a larger role in supporting renewable generation and balancing the electric grid.
SMT said the capital will allow the company to accelerate its existing project-development pipeline and pursue additional infrastructure opportunities.
Expedition Infrastructure Partners served as financial adviser to SMT Energy. Stoel Rives served as legal counsel to SMT, while Orrick served as legal counsel to CAI.
KEY QUOTES:
“This partnership is a defining milestone for SMT Energy. CAI gives us the capital and support needed to move faster and build at greater scale. We are grateful to Bill Green and the entire CAI team for their confidence in our platform and our people.”
JJ Switzer, Co-Founder and Co-CEO of SMT Energy
“CAI is relentlessly focused on the macro trends driving the future of global infrastructure, and this investment in SMT fits squarely into a key CAI inevitability: as wind and solar proliferate as the most efficient and fastest ways to deploy new power, battery energy storage is increasingly critical for grid stabilization. We are proud to back a team with such an impressive track record as they scale into the next phase of growth.”
Bill Green, Managing Partner of Climate Adaptive Infrastructure
