Flatiron Closes on Financing for East Coast’s Largest Battery Energy Storage Project

Flatiron Energy said Thursday that it closed on approximately $850 million of construction and term financing commitments from leading financial institutions to support the Energizar Project in Chelsea, MA, which upon completion will be the largest battery energy storage facility on the East Coast. The financing spans construction and bridge loan facilities, term loan facilities, letter of credit facilities, a preferred equity commitment and a tax credit transfer commitment.

Energizar is a 1,200-MWh battery energy storage asset that that’s slated to reach commercial operations in the fourth quarter of 2027. It will provide critical capacity and peaking energy resources for the local communities that rely upon the Boston grid, according to Flatiron.

The construction loans, term loans, bridge loans and letters of credit were provided by a consortium of banks. Nord L/B, Santander and Societe Generale served as coordinating lead arrangers; Investec and East West Bank served as joint lead arrangers; and Siemens Financial Services served as lender. East West Bank also acted as depositary and Santander acted as administrative agent.

The preferred equity commitment was provided by funds managed by a global credit asset manager with more than $350 billion of assets under management. Two Fortune 500 corporations provided a commitment to transfer a portion of the project’s investment tax credits.