Spearmint Energy announced it has closed approximately $450 million in project financings to support Red Egret, a 300 MW / 600 MWh standalone battery energy storage system in Texas City, Texas. The project is expected to commence operations in 2027 and is designed to support grid reliability across ERCOT as electricity demand continues to rise.
The financing package includes a construction facility, an Investment Tax Credit transfer, and preferred equity. The construction financing totals $225 million and is being provided by a consortium of banks led by First Citizens Bank and Investec as Coordinating Lead Arrangers and Joint Bookrunners. Nord/LB participated as Joint Lead Arranger, while East West Bank served as Mandated Lead Arranger.
The construction facility is expected to be repaid once commercial operations begin, supported by $96 million of preferred equity investment from Nuveen through its energy infrastructure credit platform backed by TIAA. The project will also receive approximately $126 million in proceeds from an Investment Tax Credit transfer commitment.
Construction on Red Egret has already begun. The project marks the fourth battery energy storage project built for Spearmint by M.A. Mortenson Company and the fourth Spearmint project utilizing the PowerTitan platform supplied by Sungrow USA Corporation. Upon completion, Spearmint’s operating portfolio is expected to exceed 1.5 GWh of battery capacity across four projects.
Legal counsel involved in the transaction 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.
Founded as a next-generation energy company focused on battery energy storage systems, Spearmint currently operates 350 MW / 700 MWh in ERCOT and continues to expand its development pipeline across the United States.
KEY QUOTE:
“As aging grid infrastructure meets unprecedented growth in electricity demand, this financing supports Spearmint’s ability to increase energy resilience in ERCOT through battery energy storage systems. 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.”
Andrew Waranch, Founder, President, and Chief Executive Officer, Spearmint Energy
