Gore Street Energy Storage Fund PLC on Tuesday said it has secured a $60 million loan for its subsidiary Big Rock ESS Assets LLC’s Big Rock project in California from First Citizens Bank.
Gore Street Energy Storage is an investor in utility-scale energy storage projects. It said the loan will be used to fund the remaining capital costs for the 200-megawatt, 400-megawatt-hour project, which has been funded with Gore Street Energy Storage equity to date.
The loan is for an initial three-year term, Gore Street Energy Storage said, and is expected to be refinanced with longer-term project finance once the project becomes operational.
Gore Street Energy Storage said the loan allows it to allocate capital to other portfolio projects and to maintain its portfolio diversification standards.
As previously announced, it said the project is expected to be underpinned by a standard California long-term fixed revenue contract for up to 40% of project revenues, while also benefitting from investment tax credits for at least 30% of eligible capital costs under the 2022 US Inflation Reduction Act.
‘We are very pleased to have secured debt financing for the Big Rock project, which exhibits a differentiated revenue profile given the higher level of contracted revenues in CAISO - one of the most attractive energy markets globally,’ said Alex O’Cinneide, chief executive officer of Gore Street Capital Ltd, the investment manager of Gore Street Energy Storage.
‘The financing will be drawn against our funding and construction plan as we continue to work closely with our various project stakeholders, including battery suppliers and integrators, to deliver the project, which remains on schedule.
‘In this context, we are delighted to announce another key stakeholder relationship with First Citizens, one of the leading lenders in the renewables space in the US with a strong background in delivering large-scale projects such as Big Rock.’
First Citizens Bank Head of Energy Group Mike Lorusso commented: ‘Big Rock’s strategic location and use of commercially proven tier 1 technology makes it a valuable addition to Gore Street Energy Storage Fund’s portfolio. We appreciated working with the company’s highly experienced investment management team in structuring this unique financing to support completion of this attractive project.’
Shares in Gore Street Energy Storage were up 0.1% to 67.88 pence each in London on Tuesday morning.
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