GridStor Announces Close of Tax Credit Sale for Goleta Energy Storage Project.
GridStor, a developer and operator of utility-scale battery energy storage systems, announced today that it closed its first tax credit sale with J.P. Morgan in support of its Goleta Energy Storage project. The standalone battery energy storage project is the largest lithium-ion battery facility in Santa Barbara County and began operations in December 2023. In addition to the tax credit transfer, GridStor’s Goleta Energy Storage project is financed with long term debt provided by NORD/LB and Mitsubishi HC Capital America.
Chris Taylor, CEO of GridStor, said:
This deal demonstrates the superior execution capabilities of our team and the confidence that GridStor has earned from world-leading financial institutions.
“We are proud to work with J.P. Morgan to join the first class of tax credit transfer sales associated with battery energy storage projects in North America.”
The Goleta project contains 44 emission-free batteries that comprise the biggest energy storage facility in Santa Barbara County. The 60 MW / 160 MWh lithium-ion batteries are capable of powering the equivalent of over 30,000 households over the hours each day when the electrical grid is most stressed, providing critical local reliability and support of California’s goal to decarbonize its power sector by 2045.
Battery storage assets are expected to be a significant asset class in the broader energy transition. Battery storage resources are eligible for federal investment tax credits that can now be transferred from asset owners to other business entities with tax liability.
Sondra Martinez, Head of Project Finance-Origination at NORD/LB, said:
NORD/LB is delighted to have supported the Goleta stand-alone battery storage project financing.
Battery storage is an essential part of the energy transition and mission to decarbonize the electric grid, while still ensuring grid resiliency. NORD/LB is a leader in financing storage assets as well as more broadly providing flexible, forward-looking financing solutions in support of all ESG assets across North America, Europe and Asia-Pacific regions.
Stéphane Arsenault, senior vice president of sustainable development finance at Mitsubishi HC Capital America, said:
Mitsubishi HC Capital America has long been committed to contributing to a prosperous and sustainable future.
“Supporting GridStor’s mission, as well as their latest battery energy storage project, is perfectly aligned with our plans to provide unique and progressive financing solutions with the global environment in mind.”
Building on more than a decade of experience financing clean technology projects, Mitsubishi HC Capital America has established a dedicated Sustainable Development Group (SDG) to assist customers in achieving their sustainability goals. Their focus areas include clean technology, mobility, digital manufacturing, climate-smart agriculture, and water and water treatment. GridStor’s Goleta project represents the company’s sixth transaction in the battery energy storage sector.
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GridStor Announces Close of Tax Credit Sale for Goleta Energy Storage Project. source
