First Citizens Bank Serves as Lead Arranger on $250 Million Financing for Innovative Hybrid Thermal and Battery Energy Storage Projects in California
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First Citizens Bank and MUFG acted as co-lead arrangers on the financing that includes a construction loan that will convert to a term loan, a tax equity bridge loan, and project LC facilities. Morgan Stanley Renewables Inc. has provided the tax equity commitment for the portfolio.
The portfolio of three battery storage projects will be paired with existing gas-fired peaking generation, creating first-of-its-kind hybrid facilities providing both low-emissions electricity and long-term reliability to
Co-locating the natural gas peaking facilities with battery storage results in significant reductions in greenhouse gas emissions while maintaining reliable, flexible reserve capacity. The battery facilities will be able to store excess solar power during the day and release it when it is most needed over the evening hours. In addition, the natural gas-fired combustion turbines will dispatch significantly less often than they do today, resulting in lower emissions, while remaining available to dispatch during extreme conditions.
"Middle River Power is building on its reputation as a provider of highly reliable power generation by developing high-quality energy facilities that serve the environmental and economic objectives of the regions where they do business," said Mike Lorusso, managing director and group head for First Citizens' Energy Finance unit. "We were pleased to work with them again in supporting financing for this innovative project which adds battery storage to existing gas generation."
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About First Citizens Bank
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SOURCE First Citizens Bank
FAQ
What is the financing amount for Middle River Power's battery storage projects in California?
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