OCI Energy Secures Financing for Battery Project
OCI Energy is thrilled to announce the successful closing of construction financing for Project Alamo City, a state-of-the-art battery energy storage system currently being developed. This project, located in Texas, aims to provide a robust capacity of 120 MW with a duration of four hours, contributing significantly to energy storage solutions in the region.
Collaborative Financial Partnership
In a strategic move, OCI Energy has partnered with ING to manage the construction financing package, which includes essential components like a construction-to-term loan and a tax equity bridge loan. ING has taken on multiple key roles including being the sole lead arranger and coordinator for this green loan, highlighting the strength of their collaborative relationship.
Innovative Energy Solutions
According to Sabah Bayatli, President of OCI Energy, "Project Alamo City signifies a substantial commitment to enhancing grid stability and ensuring long-term energy reliability." This innovative project represents a return for OCI Energy as a developer-owner-operator in project finance, marking an important step in sustainable energy development.
Impacts on the Energy Market
Sven Wellock from ING emphasized that the successful financing of the project is a prime example of how partnerships can accelerate energy transitions. By deploying advanced battery storage technology in Texas, the project not only aims to improve local energy reliability but also delivers benefits to communities and larger energy markets.
Partnerships and Agreements
OCI Energy previously entered a 20-year Storage Capacity Agreement with CPS Energy, the largest municipally-owned electric utility in the United States. This partnership establishes OCI Energy as the developer, financier, and owner of Project Alamo City, while CPS Energy will oversee its operational management.
A Team of Experts
The project also brings together a talented and experienced team, with collaboration from several organizations:
- LG Energy Solution Vertech will provide cutting-edge battery technology.
- Elgin Power Solutions will manage the engineering, procurement, and construction (EPC).
- Black & Veatch serves as the technical advisor.
- Renewable Guard is in charge of property and casualty insurance brokerage services.
- Legal expertise for OCI Energy is provided by Foley & Lardner LLP.
- ING received representation from Skadden, Arps, Slate, Meagher & Flom LLP.
Looking Ahead
With commercial operation expected to commence in the third quarter of 2027, Project Alamo City is poised to become a transformative force in Texas's energy landscape.
About OCI Energy
OCI Energy is recognized as a leading developer, owner, and operator of utility-scale solar and battery energy storage projects. Since its inception in 2012, the company has been dedicated to accelerating the transition to clean energy through high-performance solutions. With plans targeting up to 10 GW of energy generation by 2028, OCI Energy is on a mission to energize communities across the nation.
About ING Capital
ING Capital LLC offers a wide array of financial products and advisory services tailored for corporate and institutional clients. As an indirect U.S. subsidiary of ING Bank NV, ING Capital plays a crucial role in facilitating financial solutions that empower businesses and support community development.
Frequently Asked Questions
What is Project Alamo City?
Project Alamo City is a battery energy storage system being developed by OCI Energy, with a capacity of 120 MW designed to enhance grid reliability in Texas.
Who is financing Project Alamo City?
OCI Energy has partnered with ING to provide the construction financing needed for Project Alamo City, which includes loans and credit facilities.
What role does CPS Energy play in this project?
CPS Energy has a 20-year Storage Capacity Agreement with OCI Energy, overseeing operational control while OCI Energy manages the development and ownership.
When is the expected operational date for the project?
Project Alamo City is anticipated to enter commercial operation in the third quarter of 2027.
What are the contributions of the project partners?
Several partners, including LG Energy Solution and Black & Veatch, bring expertise in battery technology and technical advisory, respectively, to enhance project success.
