Clearway, Cypress Creek close $738 million in BESS financing

Two major renewables developer-operators in the United States have secured financing for their major battery storage developments this week.

Clearway Energy Group has closed financing and began construction on its Honeycomb portfolio, which comprises four battery energy storage systems (BESS) projects adjacent to an operating solar energy portfolio owned and operated by the business in the state of Utah.

Each 80 MW project will use four-hour Tesla batteries and collectively store up to 1,280 MWh of dispatchable power. Located in Iron and Beaver counties, Honeycomb is contracted with electric utility PacifiCorp under a 20-year toll agreement. 

The projects will reach commercial operations in 2026.  Construction will be led by Rosendin.

To finance the $605 million portfolio, Clearway assembled a bank consortium consisting of KeyBanc Capital Markets Inc., CoBank ACB, DNB Bank ASA, New York Branch, U.S. Bancorp Impact Finance (a U.S. Bank subsidiary), National Australia Bank Limited, Bank of America, National Association and Norddeutsche Landesbank Girozentrale, New York Branch.  

Clearway has been operating clean and reliable energy assets in Utah since 2008. “We are proud to expand our presence and economic commitment in Utah with the Honeycomb portfolio, which will bring our total fleet in the state to 869 MW. The Honeycomb battery energy storage systems represent not only a major investment in grid stability in Utah but also advances Utah’s goal of energy security for the state,” said Steve Ryder, CFO for Clearway. 

Meanwhile, Cypress Creek Renewables has managed to secure financial backing for a 200 MW standalone BESS project in Harris County, Texas, the company’s bank said in a statement on Tuesday.

First Citizens Bank said that its Energy Finance business served as lead arranger on around $133 million in financing on behalf of Cypress Creek Renewables to support the development of the Destiny Storage project.

The project is currently under construction and expected to be completed in early 2026.

“First Citizens is pleased to support Cypress Creek Renewables with the Destiny Storage project by arranging financing for its construction and operation,” said Mike Lorusso, head of Energy Finance at First Citizens Bank. “We appreciated this opportunity to put our financing expertise to work as we grow our support of battery energy storage facilities nationwide.”

US renewables developer-operator Cypress Creek Renewables has secured financing for a 200-MW battery energy storage system (BESS) project in Harris County, Texas, the company’s bank announced on Tuesday.