Spearmint Energy has finalized a financing package worth US$450 million to support the development of its Red Egret battery energy storage system (BESS) project, a significant step forward for the Texas-based initiative. The project, located in Texas City, Texas, will boast a capacity of 300MW/600MWh upon completion.
The financing package is multifaceted and includes a construction facility, an investment tax credit (ITC) transfer, and preferred equity. The construction facility, totaling US$225 million, is funded by a consortium of financial institutions led by First Citizens Bank and Investec, which served as coordinating lead arrangers and joint bookrunners. Nord/LB acted as a joint lead arranger, while East West Bank served as the mandated lead arranger.
Once the project begins commercial operations, the construction facility will be repaid with the help of US$96 million in preferred equity investment provided by Nuveen Energy Infrastructure Credit, the energy infrastructure investment arm of Nuveen, supported by financial institution TIAA. Additionally, Spearmint anticipates receiving approximately US$126 million through an ITC transfer commitment.
Construction of the Red Egret project is already underway, carried out by engineering, procurement, and construction (EPC) contractor Mortenson. The project will utilize Sungrow’s PowerTitan BESS solution, specifically incorporating 149 units of the PowerTitan 2.0, according to public filings with the Public Utility Commission of Texas (PUC). Each PowerTitan 2.0 unit integrates a 5MWh battery with a 2.5MW PCS within a 20-foot container. The PowerTitan 2.0 was launched in 2024 and remains a pivotal solution for large-scale energy storage projects.
The Red Egret BESS project is located on a 38-acre site on the northwestern outskirts of Texas City, an area zoned for heavy industrial use. This location was selected after Spearmint addressed concerns raised by the local community during its initial project proposal.
Nick Coil, Spearmint’s Vice President of Development, stated at a Texas City Commissioners meeting, "We got feedback [on our initial proposal] from the City which we took back to the drawing board and found a site that addressed all the concerns – we’re confident that we did a solid job of finding a remote location that meet all your needs."
Spearmint has secured an interconnection agreement for Red Egret with the Texas-New Mexico Power (TNMP) utility. The project is scheduled to begin commercial operations by August 31 of this year, marking a significant milestone in the advancement of battery energy storage systems in Texas.
With its substantial financing and community-responsive approach, the Red Egret BESS project is set to make a meaningful contribution to the energy landscape in Texas, supporting the state’s growing need for energy storage solutions.
