Hecate Grid Secures $125M Credit Facility to Finance Energy Storage Project Portfolio

Hecate Grid, an independent power producer (IPP) that develops, owns, and operates standalone storage projects in the U.S., closed a four-year $125 million Letter of Credit facility with Mitsubishi UFJ Financial Group (MUFG).

This funding will finance the interconnection and offtake company’s project portfolio of more than 30 standalone energy storage projects. The company also has an active project pipeline of over six gigawatts of energy storage projects in development across the U.S.

“Hecate Grid is committed to deploying energy storage that enables the transition to zero-carbon electricity while sustaining the reliability of the power grid,” said John Bonner, Hecate Grid’s Head of Finance. “The financial resources provided by MUFG will substantially augment Hecate Grid’s ongoing growth program.”

Launched in 2018, Hecate Grid is jointly owned by international infrastructure asset manager InfraRed Capital Partners Limited and Hecate Energy.

This year, Hecate Energy closed a five-year $550 million credit facility package, including a $250 million term loan and a $300 million letter of credit facility, to expand its solar and energy storage project pipeline.

Macquarie Capital served as financial advisor to Hecate Grid. Millbank acted as borrowers’ legal counsel, and Paul Hastings acted as lenders’ counsel.

According to Mercom’s Q1 2024 Funding and M&A report for Storage & Smart Grid, announced debt and public market financing in the energy storage sector totaled $10.5 billion in six deals, increased 855% year-over-year compared to Q1 2023, when $1.1 billion was raised in eight deals.

Harmony Energy, a utility-scale energy storage project developer, secured a £10 million (~$12.5 million) credit facility from Triodos Bank U.K. to support the development of new projects and its expansion across Europe.