TransGrid Energy LLC, a key player in utility-scale renewable energy projects under Hanwha FutureProof, has successfully secured over $1.4 billion in financing for battery storage projects. This substantial funding includes $705 million in debt financing, $270 million in tax equity financing, and up to $490 million in tax credit transfer transactions, all finalized in December 2024.

Capital Raised for Battery Storage Projects

The funds will help build two large battery storage facilities, Atlas VII and Atlas IX, in La Paz County, Arizona. The projects will deliver 450 megawatts and 1,800 megawatt-hours, boosting grid reliability and supporting California’s energy customers. Qcells USA, a leading EPC firm, is constructing both projects, which will begin commercial operation later this year. Southern California Edison supports these projects with 15-year Resource Adequacy contracts.

TransGrid formed a bank consortium led by Société Générale and Santander to finance $705 million in project loans. The consortium also includes BNP Paribas, Banco Bilbao Vizcaya Argentina, East West Bank, Shinhan Bank, Siemens Financial, and Associated Bank.

Hybrid Tax Equity Commitment

The financing package further includes a $270 million hybrid tax equity commitment from a major financial institution affiliate. The projects completed a tax credit transfer, allowing the sale of up to $490 million in generated investment tax credits.

Also read: esVolta Secures $243M to Expand Texas Battery Storage Projects

Strengthening California’s Energy Infrastructure

Sean Park, President of TransGrid, said, “This successful closing of $1.4 billion portfolio financing demonstrates the commitment and execution capabilities of TransGrid to advance and deliver 1,800 MWh of battery storage facilities that will support reliability and stability in the California Independent System Operator (CAISO) market.”

He added, “We are grateful for the strong support from our financing partners and look forward to expanding our partnerships to strengthen critical energy infrastructure across the country.”

Once completed, TransGrid will strengthen grid resilience and contribute to California’s clean energy goals.

Carbon Catalyst Limited (CCL) announced the start of the Poseidon carbon diozide (CO2) injection test, which commenced on 10th February. This pioneering operation, the first of its kind in the United Kingdom (UK) waters, is a significant step forward in the UK’s and the wider region’s drive to cut carbon emissions. CCL expressed its gratitude to Perenco UK, the operator of the Poseidon Joint Venture (PJV), for its contribution to achieving this significant milestone.

Positive Contribution to Decarbonization Initiatives

Nick Terrell, Executive Director at Carbon Catalyst, said, “CCL is delighted to announce the start of CO2 injection at Poseidon. This project has the potential to play a very significant role in decarbonising both the UK and Continental European economies.”

He added, “As such, reaching this milestone is an extremely positive step in derisking the project and advancing it towards commercial viability.”

Also read: UK Prepares for First Carbon Dioxide Injection Test at Leman Gas Fields

Using Advanced Technology for CO2 Injection

The Poseidon injection test utilizes Petrodec’s Erda rig, a specialized piece of equipment designed for CO2 injection. The rig will inject CO2 into the H compartment of the Leman-depleted gas field in the UK Southern North Sea. Moreover, this operation comes on the heels of the successful recompletion of the H27 well in August 2024.

After a successful injection test, the Poseidon Joint Venture will proceed to a Final Investment Decision (FID) in 2027, with the first commercial CO2 injection into permanent storage planned for 2029. The project will start by injecting 1.5 million tonnes of CO2 each year,later ramping up to 40 million tons a year. Additionally, with a capacity of 1 billion tons, Poseidon will be amongst Northwest Europe’s biggest CCS projects.