Recurrent Energy secures $513 million for Arizona energy storage project
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Crimson-6_Fall-2022_full-size-2048x1463-1.jpg)
In a press release, Recurrent Energy announced that it had secured $513 million in funds as project financing for its Papago Storage project in Arizona.
MUFG and Nord/LB were the lead arrangers for the financing acquired for the Arizona storage project.
Apart from them, Bank of America, CoBank, DNB, Rabobank, Siemens Financial Services, and Zions acted as the joint lead arrangers.
The financing comprises a “$249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility”, the release mentions.
The construction of the 1200 MWh Papago Storage is reported to begin in the third quarter of 2024. Following the successful completion of construction, commercial operations are expected to commence in the second quarter of 2025.
Also read: Orsted announces plans to install Tesla battery storage system in the UK
The Papago Storage project has a 20-year tolling agreement with Arizona Public Service and is anticipated to generate nearly 200 jobs during the construction process.
The release also mentions that the storage facility has the capacity to dispatch power sufficient to power around 244,000 households for four hours per day.
The storage facility will be owned and operated by Recurrent Energy after the plant is fully established.
Also read: Glencore plans to back Indonesian nickel miner to build battery metal plant
Ismael Guerrero, CEO of Recurrent Energy, said, “When we began developing Papago Storage in 2016, the Arizona storage market was in its infancy. Today, Arizona is one of the fastest-growing markets for energy storage in the United States, bolstered by the state’s expanding economy and cost-effective renewable energy resources.”
He added, “Today, we are thrilled to see nearly a decade of planning culminate in the financing of what will be the largest energy storage project in Arizona. We appreciate the continued support from our partners Nord/LB and MUFG in our shared mission to advance the clean energy transition.”
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/30341f8d-32ff-4c5a-ad4e-dcdb01497bd9-150x150.jpg)
EIB Global supports €271 million Egyptian climate and...
-
During the EU-Egypt Investment Conferenc...
- 02/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
Iberdrola, a Spanish renewables company, announced that it has acquired the “80% it did not control of Balantia”. Iberdrola had initially entered the firm’s capital […]
Japan’s largest steelmaker, Nippon Steel and trading house, Sumitomo Corp, announced that they have renewed a long-term contract with Norway’s Equinor to supply seamless steel pipes […]
Cepsa announced that it has entered a strategic partnership with PreZero Spain to advance objectives related to decarbonization. According to the agreement, PreZero Spain will […]
In a new critique of the voluntary carbon market, over 80 non-governmental organizations have urged corporations to exclude carbon offsets from their transition plans, arguing […]
Luxcara, an independent German asset manager for clean energy infrastructure projects, announced that it has signed a “preferred turbine supplier”. The asset manager has signed […]
Genex Power announced that it has secured a five-year $107 million senior debt facility for its 50MW Kidston and Jemalong solar projects in Australia. The […]