Flatiron Energy has secured about $850 million in construction and term financing commitments for the Energizar Battery Project in Chelsea, Massachusetts. This project puts Massachusetts at the spotlight as a leader in renewable energy project development in the US.
Significance of the Project
The standalone energy storage project will be the largest on the East Coast and one of the largest urban battery energy storage systems globally, designed at 1,200 MWh.
Timeline
Commercial operations for the Energizar project are pegged for the fourth quarter of 2027. This timeline was said by Flatiron Energy.
Additionally, once online, the facility will provide critical peaking capacity and reliability resources for the Boston metropolitan area grid, helping to offset local reliance on fossil-fuel-fired generation.
What will the Financing Commitments Used for?
The financing commitments span construction and bridge loan facilities, term loan facilities, letter of credit facilities, a preferred equity commitment, and a tax credit transfer commitment.
The debt facilities were provided by a consortium of financial institutions, with Nord/LB, Santander, and Societe Generale serving as coordinating lead arrangers; Investec and East West Bank acting as joint lead arrangers; and Siemens Financial Services participating as a lender. East West Bank served as depositary, while Santander acted as administrative agent.
A premier global credit asset manager with more than $350 billion in assets under management provided the preferred equity commitment, and two Fortune 500 corporations committed to transfer a portion of the project’s investment tax credits (ITCs).
Orrick, Herrington & Sutcliffe LLP and Foley Hoag LLP represented Flatiron Energy. Winston & Strawn LLP and Rath, Young and Pignatelli, P.C. represented the lenders.
Lastly, CCA Capital LLC advised Flatiron on the preferred equity investment and tax credit transfer. On the other hand, Riverside Risk Advisors acted as hedge advisor to Flatiron for interest rate hedging activities. Lastly, Raymond James Renewable Energy Investments advised the tax credit purchasers.
Project Factsheet
Project Name:Energizar
Developer: Flatiron Energy
Location: Chelsea, Massachusetts (Boston Metropolitan Area)
Significance: Largest standalone battery storage system on the U.S. East Coast; one of the largest urban installations globally.
Commercial Operations (COD): Expected Q4 2027
Technical Specifications
- Energy Capacity: 1,200 MWh
- Type: Standalone Battery Energy Storage System (BESS)
- Primary Function: Grid peaking capacity, regional power reliability, and reducing reliance on local fossil-fuel power generation.
Financing Structure
- Total Financing: $850 Million
- Instruments: Construction & bridge loans, term loans, letters of credit, preferred equity, and tax credit transfers.
- Debt Lenders: Consortium led by Nord/LB, Santander, and Societe Generale (Coordinating Lead Arrangers); Investec and East West Bank (Joint Lead Arrangers); Siemens Financial Services (Lender).
- Preferred Equity: Provided by a global credit asset manager ($350B+ AUM).
- Tax Credit Transfers: Committed by two Fortune 500 corporations.
Key Advisors Legal Counsel
- Borrower Counsel (Flatiron Energy): Orrick, Herrington & Sutcliffe LLP; Foley Hoag LLP
- Lender Counsel: Winston & Strawn LLP; Rath, Young and Pignatelli, P.C.
Financial and Risk Advisors:
- CCA Capital LLC (Preferred equity & tax credit transfer)
- Riverside Risk Advisors (Interest rate hedging)
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