Key Capture Energy completes ITC tax credit transfer for 200 MW BESS in Texas

Two battery energy storage facilities achieved commercial operation in Texas, along with the transfer of investment tax credits.

January 9, 2025 Anne Fischer

KCE TX 10 is a 100 MW, 200 MWh storage project located in Texas.

Image: Key Capture Energy

Two 100 MW battery energy storage facilities are now complete in Texas, with investment tax credit (ITC) transfers going to an unnamed third party.

This is Key Capture Energy’s second ITC transfer transaction under the Inflation Reduction Act (IRA) and brings its portfolio of battery energy storage operating to over 600 MW across the U.S.

KCE TX 10 is a 100 MW, 200 MWh storage project located in Denton County. KCE TX 15 is a 100 MW, 200MWh storage project located in Grimes County.

“By collaborating with our utility partners and leveraging financial tools like the ITC, we’re looking forward to bringing more battery energy storage online to support a reliable and resilient electric grid in markets nationwide,” said Brian Hayes, Key Capture Energy’s chief executive officer.

Sungrow North America is the provider of the lithium-ion battery systems.

The two new standalone projects operate within the Electric Reliability Council of Texas (ERCOT) market. The projects help to balance high levels of intermittent energy in Texas and mitigate grid fluctuations, particularly during peak demand periods. Both projects qualified for the 10% energy community tax credit bonus available under the IRA.

Carbon Reduction Capital Investment Bank and TReK facilitated the ITC transfer, which Key Capture Energy said will enable it to invest in its development portfolio across the country. The value of the transfer is not being disclosed at this time.

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