Aypa Power, a Blackstone portfolio company, announced the successful completion of its $550 million portfolio financing to support its energy storage projects. The financing was made possible by the participation of First Citizens Bank & Trust Company, Nomura Securities International, Inc. the National Bank of Canada and MUFG Bank, LTD. as well as tax equity investor U.S. Bancorp Impact Finance.
Two Key Projects for the Future of Energy: Cald in California and Borden County in Texas
The financing supports two major projects currently under construction. The first is the Cald project, a 100MW / 400MWh stand-alone battery storage project located in Los Angeles, California. This project recently signed a long-term tolling agreement with San Diego Gas & Electric. The second project is Borden County, a 150MW /300 MWh battery storage project in Texas.
Both projects will play a crucial role in improving power grid reliability and promoting the integration of renewable energies in their respective regions. Both projects are scheduled to begin commercial operations in 2024.
Reactions from major financial players
Marc Atlas, CFO of Aypa Power, spoke enthusiastically about this significant financing, emphasizing the importance of collaboration with financial partners. He said: “We are very pleased to secure this important financing and are grateful for the support and collaboration of our consortium of lenders and our tax equity investor. Our financial partners are confident in Aypa Power’s ability to deliver impactful energy solutions that benefit both the power grid and Aypa’s customers. We look forward to working with the investment community to bring more stand-alone and hybrid battery storage systems online as customer demand continues to grow in North America.”
A Crucial Collaboration for the Future of Energy in California and Texas
In addition, Louise Pesce, Managing Director of Project Finance at MUFG, who is also acting as administrative agent for the transaction, said, “MUFG is proud to have partnered with Aypa Power, as well as our fellow senior lenders Nomura, First Citizens Bank and National Bank of Canada, to lead the financing of these two stand-alone battery storage projects, which will be key components in improving the reliability and efficiency of renewable energy systems in California and Texas.”
Adam Altenhofen, Senior Vice President of U.S. Bancorp Impact Finance, said:
“It’s a pleasure to partner with Aypa as a tax equity investor. In addition, our financing facilitates the energy transition and it’s exciting to consider the potential impact of these projects in California and Texas.”
Aypa Power’s successful $550 million financing marks an important milestone in the development of large-scale energy storage projects in North America. The Cald and Borden County projects will help strengthen the reliability of the electricity grid while promoting the integration of renewable energies, thereby contributing to the transition to a more sustainable energy future.
