Frontier Power USA Secures $263M to Expand Texas Battery Storage Projects

Frontier Power USA has closed a $263 million equity raise and acquired a major Texas battery energy storage project, strengthening its pipeline as demand for grid-scale energy storage continues to grow.

Where is the new project

Frontier Power USA (FPUSA) has secured approximately $263 million in new equity financing and completed the acquisition of a large-scale battery energy storage project in Texas, marking a major milestone in the company's strategy to expand utility-scale energy storage across the United States.

The financing round exceeded the company's original fundraising target and includes investments from Cerberus Capital Management, Eos Energy Enterprises, and Hudson Bay Capital Management.

As part of the announcement, FPUSA confirmed it has acquired the Blanquilla Battery Energy Storage System (BESS) Project from Stella Energy Solutions. The project will have a planned capacity of 200 megawatts (MW) and 800 megawatt-hours (MWh) of storage using Eos' Z3 long-duration battery technology.

The acquisition is the first of four Texas battery storage projects selected under FPUSA's strategic partnership with Stella Energy Solutions. The remaining three projects are expected to transfer to the FPUSA platform during the third quarter of 2026.

How will the funding be used?

The investment includes:

• $100 million from Cerberus Capital Management.
• Approximately $113 million from Eos Energy Enterprises.
• $50 million from Hudson Bay Capital Management.

FPUSA also placed a $100 million purchase order from EOS for Phase 1 of the Blanquilla project under the companies' previously announced 2 GWh Capacity Reservation Agreement.

The company said it is negotiating final power purchase agreements with offtake providers and expects the project to utilize a Technology Performance Insurance framework arranged with Ariel Green. Financing is also expected to include debt arranged through KKR Capital Markets.

What's next?

With the Blanquilla acquisition, FPUSA has now converted 1,280 MWh of usable energy storage capacity while continuing to advance approximately 5 gigawatt-hours (GWh) of projects already aquired or under development. The company said it has identified a broader development pipeline totaling roughly 16 GWh.