Spearmint Energy secured approximately $450 million in project financing for Red Egret, a 300 MW / 600 MWh standalone BESS project in Texas City, Texas. The ERCOT asset is under construction and is expected to commence operations in 2027. The capital stack includes a $225 million construction facility, a $126 million ITC transfer commitment, and $96 million of preferred equity from Nuveen Energy Infrastructure Credit.

The deal shows how ERCOT battery storage financing is moving beyond plain construction debt. Lenders and infrastructure credit investors are backing projects that combine grid volatility exposure, tax credit monetization, and near-term execution visibility.

First Citizens Bank and Investec led the construction facility, with Nord/LB and East West Bank also participating. The preferred equity will repay the construction facility once commercial operations begin. That structure reduces refinancing risk and gives Spearmint a clearer path to ownership.

This aligns with Enerdatics’ view that ERCOT has become the leading U.S. BESS market, with investors targeting volatile nodes near Houston and West Texas for arbitrage and ancillary service upside. Enerdatics also notes that under-construction and operational BESS assets are attracting stronger buyer interest than early-stage pipelines.

Spearmint already operates 350 MW / 700 MWh in ERCOT. Red Egret will lift its operating portfolio to more than 1.5 GWh across four projects, making financing execution a platform-scaling tool rather than a single-asset event.

The signal is clear: ERCOT BESS projects with construction progress, ITC transfer certainty, and credible equity backstop are becoming financeable at scale.

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