Developers close $538 million for 1.2 GWh battery storage facility in Canada

Boralex, a renewable energy company based in Québec, Canada, has successfully closed $538 million financing for a 300 MW/ 1,200 MWh BESS project, the Hagersville Park.

Located in Haldimand County, Ontario, it will be the largest BESS project to date in Canada once it reaches the commissioning stage.

Hagersville’s financing is comprised of a $366 million construction loan, a $141 million bridge loan to be repaid when the investment tax credits are received, and a $31 million letter of credit facility. Altogether, it qualifies as a Green Loan.

The construction loan, the biggest chunk of the financing package, will convert into an amortizing term loan over 20 years following the start of commercial operation, scheduled for the final quarter of 2025.

Boralex obtained the financing with its partner Six Nations of the Grand River Development Corporation, a community investor working on behalf of indigenous Canadians.

Matt Jamieson, President and CEO of Six Nations of the Grand River Development Corporation, said the development cemented the organization “as an indigenous leader in the BESS space.”

The corporation’s current energy portfolio comprises of more than 2.4 GW of capacity through its direct or indirect involvement in five battery storage, six solar, and 14 wind projects.

Jamieson described Toronto Stock Exchange listed Boralex as one of the group’s most valued partners.

Boralex’s EVP and CFO Bruno Guilmette, congratulated his company’s teams for securing the financing with “optimal financial conditions”, which he said provides the company with “enhanced financial flexibility” as it embarks on the development.

Several financial institutions contributed to the Hagersville Park financing as part of a syndicate. The Canada branch of Sumitomo Mitsui Banking Corporation (SMBC), KfW Ipex-Bank, the Korean Development Bank, Crédit Industriel et Commercial, New York Branch et DZ Bank acted as Joint Lead Arrangers. SMBC is also administrative agent, collateral agent, as well as green loan and hedging coordinator, while KfW is the project’s technical bank.