OCI Energy has closed construction financing for Project Alamo City, a standalone battery energy storage system (BESS) project in Bexar County, Texas. The financing package consists of a construction-to-term loan, a tax equity bridge loan, and letters of credit. The debt was underwritten by ING, which acted as sole coordinating lead arranger, bookrunner, and green loan coordinator, in addition to serving as administrative agent.
The project will have a capacity of 120 MW with a four-hour duration, delivering 480 MWh of storage. Currently under development, it is expected to begin commercial operations in the third quarter of 2027. Moreover, a long-term storage capacity agreement has already been signed for 20 years with CPS Energy, under which OCI Energy will develop, finance, construct, and own the project, while CPS Energy will handle operations.
The project involves several partners, including LG Energy Solution Vertech for battery supply, Elgin Power Solutions as engineering, procurement, and construction contractor, Black & Veatch as technical advisor, and Renewable Guard for property and casualty insurance brokerage. Furthermore, legal counsel was provided by Foley & Lardner LLP for OCI Energy and by Skadden, Arps, Slate, Meagher & Flom LLP for ING.
