Cypress Creek secures $3.5 billion for mega US solar, storage project
The company announced financial close on Phase 1 and Phase 2 of the Steel River Energy Center to support construction and long-term operation of the project’s first two phases, which will add 1.63 GW of solar and 1.9 GWh of battery storage to the regional grid.
Power producer Cypress Creek Energy has secured USD 3.5 billion in funding for what is being described as one of the largest solar and battery storage developments in the United States.
The company announced financial close on Phase 1 and Phase 2 of the Steel River Energy Center to support construction and long-term operation of the project’s first two phases, which will add 1.63 gigawatts (GW) of solar and 1.9 gigawatt-hours (GWh) of battery storage to the regional grid.
Upon full buildout, the three-phase project is expected to provide 2.45 GW of solar and 2.9 GWh of battery storage by 2029, Cypress Creek said in a press release.
The financing was fully underwritten by initial coordinating lead arrangers Barclays, BNP Paribas, Santander, and Wells Fargo. Concurrent with the construction financing, Cypress Creek closed tax equity financing with a major tax equity investor.
“This financing reflects both the scale of the project and the strong support we’re seeing from the capital markets for high-quality energy infrastructure projects backed by experienced sponsors. We value the confidence and partnership of this exceptional group of financial institutions, many of whom we’ve worked with across prior transactions,” said Kevin Smith, Chief Executive Officer, Cypress Creek Energy. “Together, we’re advancing infrastructure that can help meet Arkansas’s and America’s rapidly growing electricity demand while delivering long-term economic benefits to local communities.”
Long-term power sales for Phases 1 and 2 has been secured through a virtual power purchase agreement with an investment-grade corporate counterparty. Together, these transactions provide long-term revenue certainty and strengthen the project’s financial foundation, the press release said.
“We are proud to have led the financing for these landmark projects and to have supported Cypress Creek Energy throughout every stage, from development through construction,” said Andrew Platt, Head of Energy Structured Finance & Advisory US, Santander Corporate & Investment Banking. “We value our strong relationship and congratulate Cypress Creek Energy and its partners on this significant achievement.”
“Wells Fargo is pleased to support Cypress Creek Energy as they pursue their strategy to build large scale energy infrastructure to satisfy growing electricity demand,” said Alok Garg, Head of Project & Asset Finance, Wells Fargo Corporate & Investment Banking.