Strata Clean Energy has raised $559 million to build Scatter Wash, a battery storage complex in Arizona. Among US battery financings for a single named project, Leap records only one larger in the eighteen months around it. Per MW, Scatter Wash raised far more than that bigger project did. The reason sits in two numbers the headline does not show.
Key takeaways
- Strata Clean Energy secured $559 million for the Scatter Wash battery storage complex in Arizona from a consortium led by J.P. Morgan and Nomura, announced on 21 February 2024.
- Scatter Wash is a 255 MW, 1,020 MWh battery storage complex, giving it four hours of storage duration, and it holds a 20-year tolling agreement with Arizona Public Service.
- Strata's $559 million Scatter Wash financing includes a tax equity investment from U.S. Bancorp Impact Finance, alongside lenders including CoBank, The Korea Development Bank, Norddeutsche Landesbank, Siemens and Regions Financial.
- Strata's $559 million equals about $2.19 million per MW or $0.55 million per MWh of Scatter Wash storage capacity.
- Enerdatics records 37 debt financings for US battery storage announced between July 2023 and December 2024; among those for a single named project, only Calpine's $1 billion for a 675 MW battery was larger than Scatter Wash.
Where does Scatter Wash rank?
Second, among the single-project battery financings in the slice. Enerdatics' data shows the top five announced between July 2023 and December 2024 as follows:
- Calpine, $1 billion for a 675 MW battery storage project in CAISO, January 2024.
- Strata Clean Energy, $559 million for the 255 MW Scatter Wash complex in Arizona, February 2024.
- Recurrent Energy, $513 million for the Papago battery project, June 2024.
- Clearway, $421 million for the Rosamond Central battery in CAISO, July 2023.
- Aypa Power, $398 million for the Pediment battery project, December 2024.
Single-project loans are the minority. Of the 37 records, fewer than half name one battery project, and one of those, Fengate and Alpha Omega Power's MUFG loan for the Caballero battery, carries no disclosed amount at all. Larger amounts in the same slice are not project financings. StarPlus Energy's $7.54 billion from the US Department of Energy funds two battery manufacturing plants, Aypa Power's $1.55 billion package covers several projects, and credit facilities for Jupiter Power, Eolian and esVolta support portfolios rather than one site.
Why does Scatter Wash raise more per MW than Calpine's larger project?
Because the Scatter Wash package carries four hours of storage and a tax equity investment, and per MW measures neither. Calpine's $1 billion for 675 MW works out at about $1.48 million per MW. Scatter Wash's $559 million for 255 MW is about $2.19 million per MW, roughly half as much again.
Duration is the first explanation. A battery's power rating, in MW, is how fast it can discharge. Its energy capacity, in MWh, is how long it can keep going. Scatter Wash stores 1,020 MWh behind 255 MW, which is four hours. Cells make up much of a battery's cost and scale with MWh rather than MW, so a four-hour battery costs more per MW to build than a shorter one. Leap's Calpine record does not state the MWh, so a per MWh comparison with Calpine is not possible. On Scatter Wash's own numbers the financing is about $0.55 million per MWh.
The second explanation is what is counted. Leap tags the Scatter Wash financing as debt, but the record states that it also includes tax equity from U.S. Bancorp Impact Finance. Tax equity is an investment from a party that can use the project's federal tax credits, taken in exchange for a share of early cash flows. Including it brings the total closer to the full cost of building the project than a debt-only figure would.
What does the tolling agreement do for lenders?
It turns a merchant asset into a contracted one. Under a tolling agreement, the offtaker, here Arizona Public Service, pays a fixed capacity payment for the right to control when the battery charges and discharges. The battery owner is paid for being available rather than for trading power, so revenue does not depend on price swings.
Twenty years is long for a battery contract, close to the useful life of the equipment. Leap's record describes the project as storing enough electricity to power 50,000 Arizona homes during peak summer conditions. That is the service APS is paying for: capacity at the evening peak, when solar output falls away and air conditioning demand is still high.
A long tolling contract with a regulated utility is the kind of revenue that supports a large syndicate. The Scatter Wash group runs from J.P. Morgan and Nomura through CoBank, Norddeutsche Landesbank, Regions Financial, The Korea Development Bank and Siemens.
What does the deal signal for US battery financing?
It signals that Arizona's utility-contracted batteries were raising some of the highest amounts per MW in the US market. Plus Power's financing for batteries in Texas and Arizona showed the same split in October 2023: its $701 million facility for the 250 MW Sierra Estrella and 90 MW Superstition projects in Arizona comes to about $2.06 million per MW, well above what its Texas projects raised. Scatter Wash sits in the same range.
California offers the nearest contrast in structure. Arevon's $350 million package for the four-hour Condor battery came to about $1.75 million per MW, and used a tax credit sale and preferred equity in place of traditional tax equity. Scatter Wash, announced a week later, took the traditional route.
Construction at Scatter Wash started in January 2024, with commercial operation anticipated in April 2025. For anyone benchmarking storage finance, the lesson is to read MWh and capital structure before comparing per MW figures. Two batteries of similar power rating can raise very different sums, and both can be correctly priced.
Frequently asked questions
How much did Strata Clean Energy raise for Scatter Wash? $559 million, announced on 21 February 2024, from a consortium led by J.P. Morgan and Nomura, including tax equity from U.S. Bancorp Impact Finance.
How large is the Scatter Wash battery? 255 MW of power and 1,020 MWh of energy storage, giving four hours of duration. It is located in Arizona and holds a 20-year tolling agreement with Arizona Public Service.
How does Scatter Wash compare with other US battery financings? Enerdatics ranks it second among single-project US battery financings announced between July 2023 and December 2024, behind Calpine's $1 billion for a 675 MW project.
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