Dealflow | October 24, 2023

Spearmint Energy secures $92 million in tax equity financing Texas battery storage

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 24 – Miami-based Spearmint Energy has secured a $92 million tax equity investment for Revolution, a 300 megawatt-hour battery storage project in West Texas, scheduled to begin operations by year’s end.

Greenprint Capital Management, a New York-based firm that specializes in renewable energy tax credit investments, made the investment. The Revolution project, which will be one of the largest batteries in the US, could improve the resilience of Texas’ electric grid against extreme weather conditions.

In June this year, Spearmint raked in $200 million in debt from Aiga Capital Partners to finance its larger portfolio that includes Revolution and three other battery energy storage developments.

“Our nation continues to battle grid-instability due to climate change, fluctuating oil and natural gas prices, and an increase in electricity demand,” said Spearmint’s Andrew Waranch.

Tax equity pipeline

The deal marks one of the first applications of the Inflation Reduction Act’s Investment Tax Credit, or ITC structure, for standalone battery storage.

Earlier this month, Greenprint formed a joint venture with funds managed by AllianceBernstein’s AB CarVal to deploy more than $2.5 billion in tax equity capital to clean energy and storage project developers and sponsors over the next two years.

Nonprofits and other tax-free entities can also make use of the tax incentives by selling their credits.