Pathward and NADBank Finance Energy Storage Facility to Support ERCOT Battery Growth
October 08 2024 - 7:07AM
Business Wire
Funding will support a dramatic expansion of
the sponsor’s battery storage strategy in Texas.
Pathward®, N.A. has served as agent for $146.5
million in construction loans to support the sponsor’s acquisition
and construction of six battery energy storage system (BESS)
projects in Cameron County, Texas. As a participant to the
construction facility, Texas-based North American Development Bank
(NADBank) provided funding for the projects in the amount of $73.25
million.
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According to the sponsor, together, the BESS projects will have
a total capacity of 154 megawatt-hours that will increase energy
storage capacity for the Texas grid and are expected to become
fully operational in the Summer of 2025. The standalone battery
storage projects are projected to cycle 54,925 MWh of electricity
annually, which equates to electricity consumption of approximately
4,000 U.S. households based on usage statistics from the Energy
Information Agency.
The standalone battery storage projects will participate in the
Electric Reliability Council of Texas (ERCOT) market by selling
electricity and grid stabilizing services. The batteries support
the grid and improve resilience by providing a flexible resource to
complement renewable energy build out and conventional generation.
The batteries can switch from charging to discharging electricity
within milliseconds to supply energy when it is needed most and to
supply power to help stabilize the grid. ERCOT financially
incentivizes battery projects for providing reserve energy to the
grid.
This is Pathward’s second closed construction facility with the
sponsor. In late 2023, Pathward also provided $72.35 million in
construction loans on three BESS projects in Bexar County,
Texas.
“Financing the renewable energy economy is an important
component of our sustainability strategy, and battery storage is an
exciting segment of the market that we’re passionate to support,”
said Christopher Soupal, Divisional President of Pathward’s
Commercial Finance strategic business line. “We appreciate the
ongoing trust placed with our team and the opportunity to continue
partnering on future projects in Texas. We are incredibly honored
by the strong relationship between the banks, our strategic partner
Palmetto Energy Capital, and battery storage developers.”
“NADBank is very pleased to be backing the transition to a
greener economy by supporting a more reliable Texas power grid that
will minimize power disruptions and reduce energy losses resulting
from mismatches in supply and demand,” stated NADBank Managing
Director John Beckham. “We congratulate the team on closing the
financing for this important project that will contribute to a
greener, more sustainable grid.”
Pathward is a dedicated financing partner for renewable energy
and battery storage, specializing in USDA lending programs. Through
its partnership with Palmetto, Pathward provides streamlined access
to development capital, construction loans and USDA and
conventional term loans. Pathward has closed over $2.14 billion in
renewable energy generation financing since 2018, facilitating
industry innovation, the growth of clean energy and rural economic
development.
About Pathward®
Pathward®, N.A., a national bank, is a subsidiary of Pathward
Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial
empowerment company driven by its purpose to power financial
inclusion. Pathward strives to increase financial availability,
choice and opportunity across our Banking as a Service and
Commercial Finance business lines. The strategic business lines
provide end-to-end support to individuals and businesses. Learn
more at Pathward.com.
About NADBank
NADBank is a financial institution established and capitalized
in equal parts by the United States and Mexico for the purpose of
financing environmental infrastructure projects along their common
border. As a pioneer institution in its field, the Bank is working
to develop environmentally and financially sustainable projects
with broad community support in a framework of close cooperation
and coordination between Mexico and the United States. For more
information about NADBank, visit www.nadb.org.
About Palmetto Energy Capital
Palmetto Energy Capital is the country’s leading renewables loan
service provider to banks and private credit funds. PEC provides
comprehensive loan origination, underwriting, closing, servicing
and portfolio management solutions designed to maximize value for
all stakeholders. As of August 2024, Palmetto manages a portfolio
of more than $1.5 billion in construction and term loans and $250+
million of development loans for its capital partners. For more
information about Palmetto Energy Capital, visit
https://www.PalmettoEnergyCapital.com/.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241008605760/en/
Pathward Courtney Heidelberg 605.291.7044
mediarelations@pathward.com
NADBank Oscar Durán 210.231.8000 oduran@nadb.org
Palmetto Energy Capital info@PalmettoEnergyCapital.com
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