Funding will support a dramatic expansion of the sponsor’s battery storage strategy in Texas.
RIO HONDO, Texas--(BUSINESS WIRE)--Oct. 8, 2024--
Pathward
®, N.A. has served as agent for $146.5 million in construction loans to support the sponsor’s acquisition and construction of six battery energy storage system (BESS) projects in Cameron County, Texas. As a participant to the construction facility, Texas-based North American Development Bank (NADBank) provided funding for the projects in the amount of $73.25 million.
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According to the sponsor, together, the BESS projects will have a total capacity of 154 megawatt-hours that will increase energy storage capacity for the Texas grid and are expected to become fully operational in the Summer of 2025. The standalone battery storage projects are projected to cycle 54,925 MWh of electricity annually, which equates to electricity consumption of approximately 4,000 U.S. households based on usage statistics from the Energy Information Agency.
The standalone battery storage projects will participate in the Electric Reliability Council of Texas (ERCOT) market by selling electricity and grid stabilizing services. The batteries support the grid and improve resilience by providing a flexible resource to complement renewable energy build out and conventional generation. The batteries can switch from charging to discharging electricity within milliseconds to supply energy when it is needed most and to supply power to help stabilize the grid. ERCOT financially incentivizes battery projects for providing reserve energy to the grid.
This is Pathward’s second closed construction facility with the sponsor. In late 2023, Pathward also provided $72.35 million in construction loans on three BESS projects in Bexar County, Texas.
“Financing the renewable energy economy is an important component of our sustainability strategy, and battery storage is an exciting segment of the market that we’re passionate to support,” said Christopher Soupal, Divisional President of Pathward’s Commercial Finance strategic business line. “We appreciate the ongoing trust placed with our team and the opportunity to continue partnering on future projects in Texas. We are incredibly honored by the strong relationship between the banks, our strategic partner Palmetto Energy Capital, and battery storage developers.”
“NADBank is very pleased to be backing the transition to a greener economy by supporting a more reliable Texas power grid that will minimize power disruptions and reduce energy losses resulting from mismatches in supply and demand,” stated NADBank Managing Director John Beckham. “We congratulate the team on closing the financing for this important project that will contribute to a greener, more sustainable grid.”
Pathward is a dedicated financing partner for renewable energy and battery storage, specializing in USDA lending programs. Through its partnership with Palmetto, Pathward provides streamlined access to development capital, construction loans and USDA and conventional term loans. Pathward has closed over $2.14 billion in renewable energy generation financing since 2018, facilitating industry innovation, the growth of clean energy and rural economic development.
About Pathward®
Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide end-to-end support to individuals and businesses. Learn more at Pathward.com.
About NADBank
NADBank is a financial institution established and capitalized in equal parts by the United States and Mexico for the purpose of financing environmental infrastructure projects along their common border. As a pioneer institution in its field, the Bank is working to develop environmentally and financially sustainable projects with broad community support in a framework of close cooperation and coordination between Mexico and the United States. For more information about NADBank, visit www.nadb.org.
About Palmetto Energy Capital
Palmetto Energy Capital is the country’s leading renewables loan service provider to banks and private credit funds. PEC provides comprehensive loan origination, underwriting, closing, servicing and portfolio management solutions designed to maximize value for all stakeholders. As of August 2024, Palmetto manages a portfolio of more than $1.5 billion in construction and term loans and $250+ million of development loans for its capital partners. For more information about Palmetto Energy Capital, visit https://www.PalmettoEnergyCapital.com/.
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Pathward
Courtney Heidelberg
605.291.7044
mediarelations@pathward.com
NADBank
Oscar Durán
210.231.8000
oduran@nadb.org
Palmetto Energy Capital
info@PalmettoEnergyCapital.com
Source: Pathward, N.A.
