Spearmint Energy secures $200 million loan to develop storage in Texas

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Spearmint Energy announced the close of a $200 million credit facility with Aiga Capital Partners, an investment management firm serving North American-based companies in renewable energy, energy storage and other sustainable infrastructure sectors.

The funding will support continued development of Revolution, a 150 MW, 2-hour battery energy storage system (BESS) project in West Texas. The project is being developed in partnership with Mortenson, a power engineering, procurement and construction (EPC) contractor that is constructing the battery storage facility, substation and transmission line connecting the project to the ERCOT grid.

According to Mortenson, Revolution is expected to be one of the largest batteries in the U.S. and will begin operation in mid-2023.

“This facility will enable Spearmint to accelerate the construction of our projects currently under development, capitalize on our strong pipeline of development opportunities, and reliably deliver renewable energy to the grid for years to come,” said Andrew Waranch, founder, president, and chief executive officer of Spearmint.

Spearmint is also developing three additional BESS projects, known collectively as Nomadic. The three have a combined capacity of 900 MW / 2,000 MWh. The projects are located in Cooke, Galveston,and Brazoria counties and were acquired in March of this year. Spearmint anticipates that the first project within the portfolio will reach notice to proceed in early 2024 and begin commercial operation within 12 to 18 months.

Javelin Capital and Paul Hastings LLP served as financial advisor and legal counsel, respectively, to Spearmint. Holland and Knight served as legal counsel for Aiga.

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