Spearmint Energy, a next-generation energy company focused on large-scale battery storage, announced it has closed approximately $450 million in financing to support the Red Egret Battery Storage System Project in Texas City, Texas.
The Red Egret project will be a 300 Megawatt (MW) standalone Battery Energy Storage System (BESS) designed to strengthen grid reliability and improve energy resilience across the Texas Gulf Coast and the ERCOT power market.
According to the company, the financing package includes a construction facility, an Investment Tax Credit (ITC) transfer, and preferred equity financing.
Spearmint Founder, President, and CEO Andrew Waranch said the project comes as Texas faces growing electricity demand alongside aging grid infrastructure.
"As aging grid infrastructure meets unprecedented growth in electricity demand, this financing supports Spearmint's ability to increase energy resilience in ERCOT through battery energy storage systems," said Waranch. "Through our development of Red Egret, we are working to strengthen reliability and deliver safe, cost-effective power to homes and businesses in Texas City and throughout the Texas Gulf Coast."
The construction financing totals $225 million and is being provided by a consortium of banks led by First Citizens Bank and Investec as Coordinating Lead Arrangers and joint book runners. Nord/LB is serving as Joint Lead Arranger, while East West Bank is participating as Mandated Lead Arranger.
The project also secured $96 million in preferred equity investment from Nuveen Energy Infrastructure Credit, which is backed by TIAA. In addition, the project is expected to receive approximately $126 million through an Investment Tax Credit transfer commitment.
Construction on the project is already underway. Once completed in 2027, Spearmint said its operational portfolio will include more than 1.5 GWh of battery storage capacity across four projects.
Battery storage projects have become increasingly important in Texas as ERCOT officials continue working to improve grid reliability during periods of high demand and extreme weather conditions.
