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OCI Energy secures construction financing for 480 MWh battery in Texas

OCI Energy has finalised construction financing with ING for the Alamo City project, a 480 MWh battery to be operated by CPS Energy from 2027 in Bexar County, Texas.

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OCI Energy has announced the closing of construction financing for the Alamo City project, a Battery Energy Storage System (BESS) with a capacity of 120 MW over four hours, or 480 MWh. The site is under development in Bexar County, Texas, and will be one of the largest standalone storage projects in the state.

Structured financing led by ING

Dutch bank ING was appointed sole coordinating lead arranger, sole bookrunner, sole green loan coordinator and administrative agent for the financing. The package includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. The financial structure is designed to support the project through to its commercial operation date, scheduled for the third quarter of 2027.

OCI Energy stated that this financial partnership marks its return as a developer-owner-operator in the project finance segment. The project aligns with a broader strategy to enhance grid stability in Texas while consolidating the company’s position in the electricity storage sector.

20-year contract with CPS Energy

The project is backed by a 20-year Storage Capacity Agreement signed with CPS Energy, the largest municipally owned electric and natural gas utility in the United States. OCI Energy will retain ownership of the system, while CPS Energy will assume operational control once the site is commissioned.

Technical partners for the project include LG Energy Solution Vertech for battery supply, Elgin Power Solutions as the EPC (engineering, procurement, construction) contractor, Black & Veatch as technical advisor, and Renewable Guard for insurance services. Foley & Lardner LLP advised OCI Energy, while Skadden, Arps, Slate, Meagher & Flom LLP represented ING in the legal structuring.

A milestone for standalone storage in Texas

The system’s capacity, fully dedicated to storage, will help increase grid flexibility in a region with high electricity demand. Alamo City joins a series of strategic projects aimed at stabilising the Texas power market, which faces frequent stress due to demand peaks and extreme weather conditions.

With this project, OCI Energy expands its portfolio of large-scale storage assets while reinforcing a strategy based on structured banking partnerships in a demanding financial environment.

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