Data Center Battery Storage Project Granted $50 Million Credit Line: NORD/LB and GridStor Announce Funding Completion
NORD/LB and GridStor Partner for Major Battery Energy Storage Facility
In a significant development for the renewable energy sector, NORD/LB, a leading financing institution, has closed a $55 million debt financing agreement with GridStor for the development of Goleta Energy Storage, a 60 MW/160 MWh stand-alone battery energy storage facility in Santa Barbara County, California.
This project is part of GridStor's extensive pipeline of over 3 GW of projects across the western and central U.S., with many in later-stage development or under construction. The company has also made headlines with 450 MW of late-stage project acquisitions year-to-date for facilities in Texas, Oklahoma, and Arizona.
GridStor's strategic partnership with NORD/LB not only boosts the company's agility to execute rapidly when new opportunities align with its strategic goals but also strengthens its financial position. This partnership follows GridStor's successful closure of a $50 million letter of credit with NORD/LB to support its nationwide development pipeline of battery energy storage facilities for utility and data center customers.
Frank Burkhartsmeyer, CFO of GridStor, expressed his enthusiasm about the partnership, stating, "NORD/LB's expertise in financing storage assets and providing flexible, forward-looking financing solutions for ESG assets across North America, Europe, and Asia-Pacific regions, makes them an ideal partner for GridStor."
Chris Taylor, CEO of GridStor, emphasized the importance of battery storage in strengthening the American electrical grid, particularly for data centers and other large power users that require more electricity for commercial activities. He further added that GridStor anticipates more later-stage project acquisitions to provide cost-effective solutions to utility and data center customers.
Sondra Martinez, Head of Project Finance-Origination at NORD/LB, is leading the financing of the development LC Facility. She stated, "We are committed to supporting GridStor in their mission to provide innovative and sustainable energy solutions, and we are excited to be a part of the Goleta Energy Storage project."
Battery storage assets are expected to remain a significant asset class in the broader energy sector, as they play a crucial role in balancing the grid, improving grid reliability, and facilitating the integration of renewable energy sources.
This news comes at a time when the battery market is shaping up, with the recent announcement of the completion of the $50 million letter of credit facility for GridStor, as reported in the latest Batteries News.
As GridStor continues to develop battery energy storage projects across North America, it is clear that their strategic partnership with NORD/LB will be instrumental in their success. This partnership underscores NORD/LB's commitment to supporting sustainable energy projects and its role as a leader in the financing of storage assets.
This article is sourced from "Business Development".
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