SMT Energy, a developer, owner, and operator of battery energy storage projects, secured $135 million in project financing to develop a 160 MW/320 MWh battery energy storage project in Houston, Texas, also known as SMT Houston IV. Macquarie and KeyBanc acted as the joint lead arrangers and provided $100 million in funding.
Macquarie’s Commodities and Global Markets division also made a preferred equity investment and has been appointed to sell the project’s investment tax credits, valued at approximately $62 million.
The energy storage project is expected to start commercial operation in Q2 2026 and, once completed, will be connected to the ERCOT power grid, enabling the facility to engage in the wholesale market by supplying energy and ancillary services.
KeyBanc also acted as a financial advisor to SMT on the financing. FlexGen Power Systems is obtaining the equipment for the project, which will also utilize FlexGen’s energy management software.
“This was no small feat. SMT is grateful to the teams at Macquarie, KeyBanc, and FlexGen for their expertise and deep industry knowledge to get this complex deal across the line,” noted J.J. Switzer, Co-Founder and Managing Partner of SMT Energy.
“We are pleased to work with SMT on this transaction, which demonstrates our ability to bring multiple capabilities together to provide clients with innovative solutions in this growing market,” said Tom Colebatch, Managing Director in Macquarie’s Commodities and Global Markets business.
With this closing, SMT Energy is stated to have 18 utility-scale battery energy storage assets, encompassing approximately 500 MWh, in operation or construction.
According to Mercom’s Annual and Q4 2024 Funding and M&A Report for Energy Storage and Smart Grid, announced Energy Storage project funding in 2024 increased 53% year-over-year.
Earlier this week, Lion Storage, a Dutch utility-scale battery energy storage project developer, announced the financial closure of the 350 MW/1,400 MWh Project Mufasa in the Netherlands.
