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    1. Energy Storage

    Strata Secures $559M Financing for 1.02 GWh Scatter Wash Battery Storage in Arizona

    Feb. 23, 2024
    The facility will store enough electricity to power 50,000 Arizona homes during peak summer conditions for 20 years and is expected to be operational by April 2025.
    Image credit Strata Clean Energy
    65d8b122e75db1001eb4a7a4 Stratacleanenergycalifornia

    Strata Clean Energy (Strata), a developer, owner, and operator of renewable energy projects, secured a $559 million financing for the construction and ownership of the 255 MW/1,020 MWh Scatter Wash battery storage complex, which is expected to be operational by April 2025.

    The battery storage complex will store enough electricity to power 50,000 Arizona homes during peak summer conditions for up to 20 years. It is intended not only to enable grid stability but also streamline the incorporation of renewable energy sources in Arizona for improved economic growth and environmental sustainability.

    In May 2023, Strata forged a 20-year tolling agreement with Arizona Public Service, cementing its commitment to this nitiative.

    J.P. Morgan and Nomura acted as coordinating lead arrangers and joint bookrunners for the project. J.P. Morgan also fulfilled roles 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.

    Siemens and Regions were the lenders in this project, and U.S. Bancorp Impact Finance was also the primary tax equity investor.

    "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, Chief Executive Officer 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."

     

    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.