BESS financing: Spearmint closes $450 million for 600 MWh ERCOT project, PowerBank leases 60 MWh across New York

Spearmint closes $450 million for Red Egret

Miami-based Spearmint Energy has closed approximately $450 million in financing for its standalone 300 MW / 600 MWh Red Egret battery energy storage system (BESS), set for Texas City, Texas, and targeting commercial operations in 2027.

The package comprises a $225 million construction facility led by First Citizens Bank and Investec as coordinating lead arrangers, with Nord/LB and East West Bank also participating, along with $96 million in preferred equity from Nuveen Energy Infrastructure Credit, and approximately $126 million from an ITC transfer commitment.

Construction has already begun. Red Egret is the fourth Spearmint project built by M.A. Mortenson Company and the fourth to use Sungrow USA’s PowerTitan platform. On completion, Spearmint’s operating portfolio will exceed 1.5 GWh across four projects.

“As aging grid infrastructure meets unprecedented growth in electricity demand, this financing supports Spearmint’s ability to increase energy resilience in ERCOT through battery energy storage systems,” said Andrew Waranch, founder, president, and CEO of Spearmint.

PowerBank leases 60 MWh across three upstate New York sites

Toronto-based PowerBank Corporation has executed lease agreements on three BESS projects in upstate New York — Round Hill Rd, Montana Rd, and Genesee Rd — each rated at up to 5 MWac with four-hour discharge, totalling 60 MWh.

Leasing has become an more common structure for smaller storage projects, where developers avoid the full upfront capital cost of ownership while still earning revenue from grid services and incentive programs.

Key for this project is expected eligibility for NYSERDA’s Retail Storage Incentive Program and compensation under New York’s Value of Distributed Energy Resources mechanism. PowerBank said it is initiating preliminary interconnection screening, with permitting and financing to follow subject to approval.