Cypress Creek Energy has reached financial close on US$ 3.5 billion in funding for the first two phases of the Steel River Energy Center, a large-scale solar and battery storage project in the United States.
The financing will support construction and long-term operation of Phase 1 and Phase 2, which together are expected to add 1.63 gigawatts (GW) of solar and 1.9 gigawatt-hours (GWh) of battery storage to the regional grid. Cypress Creek described the broader development as one of the largest solar and battery storage projects in the country.
When all three phases are completed, the Steel River project is expected to deliver 2.45 GW of solar and 2.9 GWh of battery storage by 2029, according to the company.
The financing was fully underwritten by initial coordinating lead arrangers Barclays, BNP Paribas, Santander, and Wells Fargo. At the same time as the construction financing closed, Cypress Creek also completed tax equity financing with a major tax equity investor.
Long-term power sales for Phases 1 and 2 have been secured through a virtual power purchase agreement with an investment-grade corporate counterparty. Cypress Creek said the financing and power sales arrangements provide long-term revenue certainty and strengthen the project’s financial foundation.
"This financing reflects both the scale of the project and the strong support we’re seeing from the capital markets for high-quality energy infrastructure projects backed by experienced sponsors. We value the confidence and partnership of this exceptional group of financial institutions, many of whom we’ve worked with across prior transactions", said Kevin Smith, Chief Executive Officer, Cypress Creek Energy. "Together, we’re advancing infrastructure that can help meet Arkansas’s and America’s rapidly growing electricity demand while delivering long-term economic benefits to local communities."
Santander and Wells Fargo also commented on the transaction.
"We are proud to have led the financing for these landmark projects and to have supported Cypress Creek Energy throughout every stage, from development through construction", said Andrew Platt, Head of Energy Structured Finance & Advisory US, Santander Corporate & Investment Banking. "We value our strong relationship and congratulate Cypress Creek Energy and its partners on this significant achievement."
"Wells Fargo is pleased to support Cypress Creek Energy as they pursue their strategy to build large scale energy infrastructure to satisfy growing electricity demand", said Alok Garg, Head of Project & Asset Finance, Wells Fargo Corporate & Investment Banking.
