IPP Hecate Grid raises US$98.9 million for ‘laser-focused’ standalone energy storage deployment
Summary
Hecate Grid, an independent power producer (IPP) developing utility-scale battery storage assets, has raised US$98.9 million through lenders.The company said yesterday (7 February) that it secured the credit facility package, which will be used to recapitalise its operational assets and for funding a Southern California portfolio of standalone battery energy storage system (BESS) projects construction.Hecate Grid was launched as a joint venture (JV) between US developer Hecate Energy and investor InfraRed Capital Partners in 2018, targeting the development, construction, ownership and operation of utility-scale energy storage assets in North America.In late January, Hecate Energy secured a credit facility package of its own, worth US$550 million. At the time, as reported by Energy-Storage.news, the developer said the borrowing was being collateralised by its pipeline of renewable energy and storage projects.It would also be collateralised against Hecate Energys continued minority equity interest in Hecate Grid, the company said, noting that the financing was secured without credit support and calling its structuring innovative.In an echo of that announcement, Hecate Grid said yesterday that its own financing package has been collateralised against its BESS portfolio and the money was again secured without guarantees or other credit support.Hecate Grids US$98.9 million borrowing comprises a US$79.5 million term-loan, and US$19.4 million letter of credit, over a six-year term. Peregrine Energy Solutions claimed that it has a 6GW pipeline of development opportunities that it unearthed with an apparently proprietary prospecting methodology. That pipeline has premium earning potential and Peregrine has site control over the lots, the company said.Energy-Storage.news publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country.