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."
