ENERGY STORAGE

Strata Clean Energy closes $559m US storage financing

February 22, 2024

Renewable energy developer Strata Clean Energy has closed a $559 million financing for the construction and ownership of the Scatter Wash battery storage complex in Arizona in the US.

The 255MW/1,020MWh storage facility broke ground in January and is expected to be operational by April 2025.

A consortium of financial institutions provided funding for the project – J.P. Morgan and Nomura acted as coordinating lead arrangers and joint bookrunners. J.P. Morgan also acted as administrative agent, depositary agent, and collateral agent. The financing was further supported by U.S. Bancorp Impact Finance and CoBank as coordinating lead arrangers with The Korea Development Bank and Norddeutsche Landesbank as joint lead arrangers. Other lenders were Siemens and Regions, while U.S. Bancorp Impact Finance was the primary tax equity investor.

The Scatter Wash battery storage complex will store enough electricity to power 50,000 Arizona homes “during peak summer conditions” for 20 years, a statement said. In May 2023, Strata signed a 20-year tolling agreement with Arizona Public Service.

“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,” said Markus Wilhelm, CEO of Strata 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.”

John Beebe, executive director, J.P. Morgan green economy banking, added: “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.”

Sunil Rajpurohit, U.S. Bancorp Impact Finance chief investment and product officer, 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. We believe everyone has a role to play in creating a sustainable future and look forward to the potential impact this project will have in Arizona.”