Catalyze Secures $100 Million Financing for Community Solar Projects

Aypa Power, a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects, secured $550 million in debt and tax equity financing for energy storage projects.

The First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada, and MUFG Bank, LTD. served as lenders, and U.S. Bancorp Impact Finance as the portfolio’s tax equity investor.

This portfolio financing supports two projects; the Cald project, which is a 100 MW / 400 MWh standalone battery storage project in urban Los Angeles, California, which secured a long-term tolling agreement with San Diego Gas & Electric, and the Borden County project, a 150 MW / 300 MWh battery storage project in Texas. Both projects are under construction and set to commence commercial operations in 2024.

Marc Atlas, Chief Financial Officer at Aypa Power, expressed his enthusiasm about the financing, stating, “We are very pleased to secure this significant financing package and greatly appreciate the support and collaboration of our lender consortium and tax equity investor. Our financial partners are confident in Aypa Power’s ability to deliver impactful energy solutions benefitting both the grid and Aypa’s customers. We look forward to working with the investor community to bring more standalone battery and hybrid systems online as customer demand continues to grow across North America.”

Louise Pesce, Managing Director of Project Finance at MUFG, which is also serving as Administrative Agent on the transaction, stated, “MUFG is proud to have partnered with Aypa Power, as well as our fellow lead lenders in Nomura, First Citizens Bank and National Bank of Canada, to lead the financing for these two standalone battery storage projects, which will be essential components in enhancing the reliability and effectiveness of renewable energy systems in California and Texas.”

According to Mercom’s 9M and Q3 2023 Energy Storage and Smart Grid Report, there were 26 announced Energy Storage project funding deals in 9M 2023, bringing in a combined $6.8 billion compared to $5.4 billion in 34 deals in 9M 2022.