US-based renewable energy projects developer Strata Clean Energy has secured $559m financing for the construction and ownership of the Scatter Wash battery storage complex.
Strata secured the project financing from a consortium of financial institutions, with J.P. Morgan and Nomura as coordinating lead arrangers and joint book-runners.
JP Morgan also served as an administrative agent, depositary agent, and collateral agent.
The U.S. Bancorp Impact Finance and CoBank served as coordinating lead arrangers, and The Korea Development Bank and Norddeutsche Landesbank as joint lead arrangers.
In addition, Siemens and Regions served as project lenders, and U.S. Bancorp Impact Finance also served as the primary tax equity investor.
J.P. Morgan Green Economy Banking executive director John Beebe said: “J.P. Morgan is working to provide capital to accelerate the growth of sustainable infrastructure nationwide. We’re very pleased to work alongside Strata to decarbonize our communities and build a more resilient energy future.”
Impact Finance chief investment and product officer Sunil Rajpurohit said: “U.S. Bancorp Impact Finance is thrilled to expand an already fruitful relationship with Strata Clean Energy by deploying debt and tax equity to meet our customer’s demand for this exciting project.”
In May 2023, Strata signed a 20-year tolling agreement with Arizona Public Service (APS), to build, own and operate the project and exclusively provide its energy to APS over the period.
The construction at the 255MW/1,020MWh Scatter Wash storage complex was officially started on 18 January and is expected to be operational by April 2025.
The battery storage complex be designed to store adequate electricity to power 50,000 households in Arizona during peak summer conditions for 20 years.
Strata said that the project will enhance the grid stability and support the incorporation of renewable sources in Arizona, advancing economic growth and environmental sustainability.
Strata Clean Energy CEO Markus Wilhelm said: “The successful financing for the Scatter Wash battery storage complex marks a significant step forward in our mission to drive the transition to clean energy.
“This opportunity to collaborate with our financing partners to bring this critical project to fruition will create a lasting, sustainable impact on a region that struggles with grid challenges and extreme heat.”
