SMT Energy has secured funding for its 160 MW / 320 MWh battery energy storage project, SMT Houston IV, in Houston, TX. The project received a US$100 million financing facility with Macquarie Group and KeyBanc Capital Markets as joint lead arrangers. Macquarie also provided a preferred equity investment and is managing the sale of approximately US$62 million in investment tax credits. KeyBanc acted as SMT’s financial advisor, while FlexGen Power Systems is supplying the project’s battery energy storage equipment.
“This was no small feat. SMT is grateful to the teams at Macquarie, KeyBanc and FlexGen for their expertise and deep industry knowledge to get this complex deal across the line,” noted J.J. Switzer, Co-Founder and Managing Partner of SMT Energy.
SMT Energy’s 160 MW / 320 MWh battery energy storage project, SMT Houston IV, will connect to the ERCOT power grid, enabling participation in the wholesale market for energy and ancillary services. As battery storage becomes essential for grid stability amid ERCOT’s rapid growth in load and intermittent generation, the project will enhance reliability by providing stored energy when needed. Expected to store and dispatch enough electricity to power 8,800 Texas homes annually, SMT Houston IV will play a crucial role in supporting ERCOT’s evolving energy landscape.
“We are pleased to work with SMT on this transaction, which demonstrates our ability to bring multiple capabilities together to provide clients with innovative solutions in this growing market” stated Tom Colebatch, Managing Director in Macquarie’s Commodities and Global Markets business.
“KeyBanc is excited to serve as joint lead arranger and financial advisor for SMT on the Houston IV project,” stated Tyler Nielsen, Director in KeyBanc Capital Markets’ Utilities, Power and Renewables Group. “This partnership shows our dedication to SMT Energy and the battery energy storage market, and we look forward to supporting storage deployment for many years to come.”
In addition to providing the equipment, the project will utilize FlexGen’s energy management system software, known as HybridOS™, which provides site integration, site control and advanced analytics insights to maximize the availability and operating ranges of battery energy storage assets. “FlexGen is proud to partner with SMT Energy on the deployment of the SMT Houston IV project, which will deliver critical services to the dynamic ERCOT power grid,” stated Jason Abiecunas, Executive Vice President of Business Development with FlexGen.
With this closing, SMT Energy has eighteen utility-scale battery energy storage assets, encompassing approximately 500 MWH, in operation or construction. In addition, SMT Energy has a 2 GWH pipeline of battery energy storage projects in ERCOT and Southwest Power Pool targeted for commercial operation by 2030.
