Key Capture Energy & Enhanced Capital agree ITC deal for 120MW of storage

January 8, 2024

US battery energy storage system developer Key Capture Energy (KCE) and investment firm Enhanced Capital have agreed a deal to transfer investment tax credits (ITCs) to a third party with immediate monetisation for three of KCE’s operating standalone battery energy storage projects with a total nameplate capacity of 120 MW.

The transaction includes the transfer of ITCs from two operating projects in Texas, KCE TX 19 and KCE TX 21 in Williamson County, totalling 100 MW and one project in New York, KCE NY 6 in Erie County, a 20 MW project.

CRC-IB served as the financial advisor to KCE. KCE was represented by Stoel Rives LLP and Enhanced Capital by Greenberg Traurig, LLP.

“This marks a historic first for Key Capture Energy that will enable immediate and future investment in our portfolio and growth in markets across the country,” said John Bresnahan, KCE’s chief financial officer.

Ed Rossier, Enhanced Capital’s managing director and head of climate finance, said: “Our collaboration with Key Capture Energy reflects our dedication to advancing clean energy initiatives. Tax credit financing for large-scale energy storage projects supports a more reliable and resilient grid and facilitates broader adoption of renewable energy generation across our country.”