Flatiron Energy closes $850M in financing commitments for Chelsea battery storage project
The package combines construction, bridge, term and letter of credit facilities with preferred equity and a tax credit transfer commitment from two Fortune 500 corporations.
At a glance
Flatiron Energy said Thursday it closed on approximately $850 million of construction and term financing commitments for the Energizar Project in Chelsea, MA.
The commitment spans construction loans, bridge facilities, term loans, letters of credit, a preferred equity commitment and a tax credit transfer commitment.
The preferred equity commitment comes from funds managed by an unnamed global credit asset manager with more than $350 billion in assets under management.
Flatiron Energy said Thursday it closed on approximately $850 million of construction and term financing commitments for the Energizar Project in Chelsea, MA. The 1,200-megawatt-hour battery storage asset is slated to reach commercial operations in the fourth quarter of 2027. Flatiron says it will be the largest battery energy storage facility on the East Coast once complete. Connect CRE first reported the financing.
The commitment spans construction loans, bridge facilities, term loans, letters of credit, a preferred equity commitment and a tax credit transfer commitment. The roughly $850 million figure is an aggregate commitment rather than a drawn balance. Nord/LB, Santander and Societe Generale are coordinating lead arrangers on the bank facilities; Investec and East West Bank are joint lead arrangers, and Siemens Financial Services is listed as a lender. East West Bank also acts as depositary, with Santander as administrative agent.
The preferred equity commitment comes from funds managed by an unnamed global credit asset manager with more than $350 billion in assets under management. Two Fortune 500 corporations committed to transfer a portion of the project's investment tax credits.
Flatiron says the project will supply capacity and peaking energy resources to communities that rely on the Boston grid.
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