Boralex and Six Nations close financing for 500 MWh Oxford BESS in Canada

The development partnership behind Canada’s largest operational BESS project has reached financial close on another grid-scale battery, bringing the 125 MW/500 MWh asset one step closer to commissioning.

Oxford BESS is being developed by Boralex Inc. and the indigenous-owned Six Nations of the Grand River Development Corporation (SNGRDC) in the township of South-West Oxford, near Ontario. The pair previously commissioned Canada’s largest BESS to date – the 300 MW/ 1,200 MWh Hagersville Battery Energy Storage Park.

The developers have secured CAD 202 million ($146 million) of financing for the Oxford BESS project, which is expected to start commercial operations in 2027.

Financing for the Oxford BESS comprises a CAD 166 million construction loan which will convert into a five-year term loan amortizing over 20 years, following the  start of commercial operation.

The package also includes a CAD 25 million bridge loan which will allow the financing of investment tax credits. This short-term facility will reduce the amount of equity capital allocated to the project, according to Boralex. The loan is expected to be repaid when the investment tax credits for the project are received.

Financing for Oxford BESS quickly follows Boralex’s announcement of an agreement to be acquired by Brookfield and La Caisse for CAD 9 billion. Brookfield will acquire 70% of Boralex under the deal, while La Caisse is expected to vote in favor of the sale and increase its shareholding from approximately 15% to 30% via a post-closing investment. Boralex is expected to continue to operate independently when the transaction is complete.

Commenting on the Oxford BESS deal, Philippe Bonin, executive vice president and chief financial officer at Boralex, said the project finance further strengthened the developer’s position as a “leader in energy storage” in Canada.

“I would like to commend the remarkable work of the Boralex teams who have structured nearly [CAD] 1 billion in high-quality financing in Ontario over the past two years to support our battery energy storage projects,” Bonin said.

SNGRDC President Matt Jamieson describe the Oxford BESS project as “another testament to the strength of our partnership with Boralex.”

Oxford BESS is Boralex’s third BESS project in North America, and SNGRDC’s fifth.