Recurrent Energy Closes Significant Funding for Storage Project
Recurrent Energy Secures Major Funding for Fort Duncan Storage
Recurrent Energy, a subsidiary of Canadian Solar Inc. (NASDAQ: CSIQ), has successfully locked in a substantial project financing and tax equity for its groundbreaking Fort Duncan Storage initiative. This ambitious 200 MWh storage facility is currently under construction and is set to provide invaluable support for Texas’s peak energy demands.
Construction Progress and Operational Timeline
The Fort Duncan project, strategically located in Texas, is on track to commence operations by the summer of 2025. The project aims to bolster the energy transition, offering enhanced reliability during critical peak periods of energy consumption. The energy generated will be sufficient to serve approximately 66,100 households, contributing significantly to the state's energy matrix.
Major Financial Backers and Partnerships
In a landmark financing moment, Nord/LB has led a total of $183 million in loans and equity. This funding includes a construction and term loan, a tax equity bridge loan, and a robust letter of credit facility. In addition to this, Recurrent Energy has established a potent $71 million tax equity partnership with Greenprint Capital, further solidifying their commitment to advancing clean energy solutions.
Comments from Leadership
Ismael Guerrero, CEO of Recurrent Energy, expressed enthusiasm over the project, stating, "The Fort Duncan Storage project significantly enhances grid reliability and supports the energy transition we are witnessing in Texas. It's a pivotal step as we meet the increasing power demands driven by economic growth and technological advances."
Sondra Martinez, a Managing Director at Nord/LB, emphasized the project as a testament to the ingenuity of their partnership, saying, "This financing showcases our long-term relationship and our capability to create innovative structures that foster clean energy advancements. "
Moreover, Peter DeFazio from Greenprint Capital reiterated the strategic importance of the project: "Fort Duncan Storage exemplifies how well-structured investments can drive both energy reliability and robust financial returns. Our partnership with Recurrent Energy on this project highlights our commitment to fostering resilient energy systems across the region."
Community and Economic Benefits
Not only will Fort Duncan provide reliable energy, but it will also yield millions in tax revenue for local communities, enhancing public services and infrastructure. The project will create significant employment opportunities during its construction phase, anticipated to peak with 75 workers on-site.
e-STORAGE is contributing to the project by supplying advanced energy storage systems, which solidifies the efficiency and capacity of the facility. Burns & McDonnell is taking the lead in the actual construction, ensuring that the project meets high standards of energy efficiency and environmental responsibility.
About Recurrent Energy
Recurrent Energy stands as a leader in utility-scale solar and energy storage project development, specifically focusing on construction, operations, and ownership. As a dynamic player in the clean energy sector, it operates under the umbrella of Canadian Solar Inc., having developed a substantial portfolio of solar projects and energy storage initiatives across multiple continents. The company has an expansive pipeline, boasting over 27 GWp of solar and 68 GWh of energy storage capacity currently in various stages of development.
About Greenprint Capital
Greenprint Capital is dedicated to investing in clean energy tax credits, striving to optimize capital deployment into sustainability-focused projects. Their goal is to enhance financial returns while promoting a positive environmental impact, thus paving the way toward a cleaner energy future.
About Canadian Solar Inc.
With a global footprint, Canadian Solar is a prominent name in the renewable energy landscape. Founded in 2001, the company specializes in solar technologies and energy storage solutions. They have developed an impressive history of delivering high-quality solar photovoltaic modules and have become a stalwart in the renewable energy market. Their venture into project development has yielded approximately 11 GWp of solar projects worldwide, with a significant emphasis on expanding battery storage capacities.
Frequently Asked Questions
What is the Fort Duncan Storage project?
The Fort Duncan Storage project is a 200 MWh energy storage facility being developed by Recurrent Energy to support Texas’s energy demands.
When is the project expected to be operational?
Fort Duncan Storage is slated to be operational by the summer of 2025.
Who are the key financial partners involved?
Nord/LB led the financing, while Greenprint Capital partnered with Recurrent Energy on tax equity investment.
How many households can the project support?
The project is expected to provide enough energy to serve around 66,100 households.
What are the expected community benefits?
In addition to generating clean energy, the project will contribute millions in tax revenues to support local community services and create job opportunities during construction.
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