Key Capture Energy (KCE), an energy storage project developer, and Enhanced Capital, an investment firm, entered a deal to transfer investment tax credits (ITCs) to a third party with immediate monetization for three of KCE’s operating standalone battery energy storage projects with a nameplate capacity of 120 MW.
The transaction includes the transfer of ITCs from two operating projects in Texas (KCE TX 19 and KCE TX 21) totaling 100 MW and another 20 MW project in New York (KCE NY6).
“This marks a historic first for Key Capture Energy that will enable immediate and future investment in our portfolio and growth in markets across the country,” said John Bresnahan, KCE’s Chief Financial Officer. “Working with Enhanced Capital to execute an industry leading ITC deal for standalone, utility-scale battery storage has been a privilege, and we thank them for partnering with us to lead the transition to a clean energy grid.”
CRC-IB served as KCE’s financial advisor. KCE was represented by Stoel Rives LLP and Enhanced Capital by Greenberg Traurig, LLP, in the transaction.
“Our collaboration with Key Capture Energy reflects our dedication to advancing clean energy initiatives,” said Ed Rossier, Enhanced Capital’s Managing Director and Head of Climate Finance. “Tax credit financing for large-scale energy storage projects supports a more reliable and resilient grid and facilitates broader adoption of renewable energy generation across our country.”
According to Mercom’s 9M and Q3 2023 Energy Storage and Smart Grid Report, In the first nine months of 2023, there were 22 project acquisition transactions (four disclosed) compared to 30 transactions (three disclosed) in 9M 2022.
Pacific Green, an energy storage project developer, through its wholly-owned subsidiary, Pacific Green Battery Energy Park (Italia), acquired a 51% stake in five projects totaling 500 MW/ 2,800 MWh in Italy from Sphera Energy Srl.