Spearmint Energy, a next-generation energy company specializing in large-scale battery storage, has closed approximately $450 million to finance Red Egret, a standalone 300 MW/600 MWh battery energy storage system (BESS) in Texas City, Texas. The financing package comprises a $225 million construction facility, preferred equity and proceeds from an Investment Tax Credit (ITC) transfer.
The construction facility is provided by a consortium led by First Citizens Bank and Investec as coordinating lead arrangers and joint bookrunners, with Nord/LB acting as joint lead arranger and East West Bank serving as mandated lead arranger. Upon commercial operation, the facility will be repaid using $96 million in preferred equity from Nuveen Energy Infrastructure Credit (backed by TIAA) plus approximately $126 million from an ITC transfer commitment.
Andrew Waranch, Founder, President and CEO of Spearmint Energy, said the financing will enhance resilience on the ERCOT grid as aging infrastructure meets rising electricity demand. “Through Red Egret, we aim to strengthen reliability and deliver safe, cost-effective power to homes and businesses along the Texas Gulf Coast,” he noted.
The financing deal reflects growing investor confidence in the battery storage sector as grid operators increasingly turn to large-scale BESS to balance renewable energy integration. Construction has commenced under a contract with M.A. Mortenson Company, marking the fourth Spearmint project built by the Minneapolis-based firm. This system also represents Spearmint’s fourth deployment of Sungrow USA’s PowerTitan platform.
Upon completion in 2027, Spearmint’s operating portfolio will exceed 1.5 GWh of battery capacity across four projects. Legal counsel included Paul Hastings LLP for Spearmint Energy, 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.
Headquartered in Florida with an office in Minnesota, Spearmint Energy develops, owns, operates and optimizes battery energy storage systems to reduce grid volatility and bolster resiliency. The company currently operates 350 MW/700 MWh in ERCOT and has additional projects under development across the United States, employing more than 60 professionals committed to values rooted in people, partnerships and the planet.
Source: Business Wire
