First Citizens Bank Provides $65.2 Million to Jupiter Power for Standalone Battery Energy Storage Project Financing

Rhea-AI Summary

First Citizens Bank (FCB) and Jupiter Power LLC (Jupiter Power) have closed on $65.2 million in financing for the construction of a 200-megawatt (MW) / 400 megawatt-hour (MWh) battery energy storage system in Houston, Texas. Jupiter Power, based in Austin, Texas, and Chicago, Illinois, is a leader in energy storage infrastructure with 775 MWh of operating projects, 620 MWh in construction, and more than 11,000 MW of new projects in development from Maine to California.

Insights

Financial Analyst

The closure of a $65.2 million financing deal for the construction of a 200-MW / 400 MWh battery energy storage system in Houston, Texas, signifies a strategic investment in the energy sector, particularly in energy storage infrastructure. This move by First Citizens Bank's Energy Finance business and Jupiter Power LLC aligns with growing trends in renewable energy and the increasing demand for energy storage solutions.

From a financial perspective, the investment in large-scale energy storage can be seen as a response to market needs for more reliable power supply, especially in a state like Texas, which has experienced significant energy supply challenges. The financing deal not only bolsters Jupiter Power's position in the market but also showcases First Citizens Bank's commitment to the sector, potentially setting a precedent for similar future investments.

Investors and stakeholders should consider the long-term implications of such investments, as they may lead to improved grid stability and support the integration of renewable energy sources. However, they should also be aware of the risks associated with the rapidly evolving technology and regulatory landscape in the energy sector.

Energy Sector Analyst

Energy storage systems like the one financed by First Citizens Bank for Jupiter Power are pivotal for the transition towards a more resilient and sustainable energy grid. With 775 MWh of operating projects and significant developments in the pipeline, Jupiter Power's expansion is indicative of the sector's growth trajectory.

The specific focus on a region with a legislative push for dispatchable power highlights a strategic approach to not only meet current demands but also anticipate regulatory and market shifts. This project's relevance is amplified by Texas's unique electricity market, managed by the Electric Reliability Council of Texas (ERCOT), which has been under scrutiny following recent power outages.

For stakeholders, the implications of such projects extend beyond immediate financial returns. They encompass broader benefits like job creation, energy security and potential environmental impacts. The strategic location in Houston, a major energy hub, could also foster further industrial synergies and innovation in energy storage technology.

NEW YORK and AUSTIN, Texas, Dec. 19, 2023 /PRNewswire/ -- First Citizens Bank and Jupiter Power LLC ("Jupiter Power") today announced that First Citizens Bank's Energy Finance business and Jupiter Power have closed on $65.2 million in financing for construction of a 200-megawatt (MW) / 400 megawatt-hour (MWh) battery energy storage system in Houston, Texas.

Based in Austin, Texas, and Chicago, Illinois, Jupiter Power is a leader in energy storage infrastructure with 775 MWh of operating projects, 620 MWh in construction and more than 11,000 MW of new projects in development from Maine to California.

"Jupiter is excited to have closed financing for this very unique project, which answers the call from the Texas Legislature to build more dispatchable power in ERCOT and near major load centers where consumers need it the most," said Andrew Bowman, Chief Executive Officer of Jupiter. "We appreciate the commitment of First Citizens Energy Finance team to understand Jupiter Power's capabilities and deliver tailored financial solutions."

"Jupiter Power has a strong reputation across the industry for identifying strategic locations for battery storage systems," said Mike Lorusso, managing director and group head for First Citizens Energy Finance. "We were pleased to be selected to again lead a financing to support their battery energy storage systems."

In addition to this financing, First Citizens Energy Finance served as the Coordinating Lead Arranger on a previous transaction with Jupiter Power for a $70.4 million construction and term loan financing facility for two standalone battery energy storage projects in Texas, totaling 160 MW/ 320 MWh.

First Citizens Energy Finance leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.

About Jupiter Power
Jupiter is a leading energy storage infrastructure platform with deep trading, analytics, development, finance, operations, and construction capabilities and unparalleled intellectual property in dispatch optimization. The company is developing more than 11,000 MW of projects from California to Maine, and has offices in Austin and Houston, Texas, and Chicago, Illinois. For more information on Jupiter Power LLC, please visit our Twitter, LinkedIn, or Facebook pages or visit www.jupiterpower.io. 

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:
Ella Bristow
(212) 461-5322
Ella.Bristow@firstcitizens.com 

Caitlin Smith
(512) 937-6574
Media@jupiterpower.io

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SOURCE First Citizens Bank

FAQ

What is the latest announcement from First Citizens Bank and Jupiter Power LLC?

First Citizens Bank and Jupiter Power LLC have announced the closing of $65.2 million in financing for the construction of a 200-megawatt (MW) / 400 megawatt-hour (MWh) battery energy storage system in Houston, Texas.

Where is Jupiter Power LLC based?

Jupiter Power LLC is based in Austin, Texas, and Chicago, Illinois.

What are the current operational and under-construction projects of Jupiter Power LLC?

Jupiter Power LLC has 775 MWh of operating projects, 620 MWh in construction, and more than 11,000 MW of new projects in development from Maine to California.

What is the role of First Citizens Energy Finance in the financing of energy projects?

First Citizens Energy Finance offers comprehensive financing solutions for renewable and conventional power generation and manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.