Key Capture Energy Completes 200MW Battery Storage in Texas
Key Capture Energy, LLC (KCE), a recognized leader in developing, owning, and operating battery energy storage systems (BESS) across the United States, has announced the successful launch of two 100MW standalone battery storage projects in Texas. Along with the commencement of commercial operations, KCE has completed the transfer of the investment tax credits (ITCs) for these projects to a third-party buyer. This achievement marks KCE’s second ITC transfer transaction under the Inflation Reduction Act (IRA) and significantly expands its operating fleet to over 620MW of battery energy storage facilities across the nation.
The successful operation of these two new projects in Texas is a major milestone for KCE, reflecting the company’s growth and leadership in the battery storage sector. This strategic move is part of the company’s broader efforts to build a resilient electric grid that can support the needs of Battery Storage energy consumers while accommodating the growing demand for renewable energy. The two projects, which are located in Denton and Grimes counties, are particularly vital in balancing the high levels of intermittent renewable energy in Texas, mitigating grid fluctuations, and providing much-needed capacity during periods of peak demand.
As the energy landscape continues to evolve, the integration of large-scale battery energy storage systems has become essential for maintaining grid stability. Battery storage allows for the efficient storage and dispatch of electricity, helping to smooth out the variable nature of renewable energy sources like wind and solar. By capturing excess energy during periods of low demand and releasing it during high-demand periods, these systems enhance the reliability and resilience of the grid.
“Key Capture Energy continues to lead the industry, and this second ITC transfer is an important milestone for the company,” said Brian Hayes, CEO of Key Capture Energy. “By collaborating with our utility partners and leveraging financial tools like the ITC, we’re looking forward to bringing more battery energy storage online to support a reliable and resilient electric grid in markets nationwide.”
Key Capture Energy’s projects within the Electric Reliability Council of Texas (ERCOT) market are of particular significance. ERCOT manages the electric grid for most of Texas, and it operates as an independent system operator, meaning that the state’s grid is largely isolated from the rest of the country. This unique grid structure has led to challenges in balancing supply and demand, particularly during extreme weather events or periods of high energy consumption. Battery storage systems like those being deployed by KCE play a critical role in mitigating these challenges by providing a flexible and responsive Battery Storage energy resource that can help meet demand during critical times.
Moreover, both of the new battery storage projects qualified for the 10 percent Key Capture Energy Completes 200MW Battery Storage in Texas Energy Community Tax Credit (ECTC) bonus available under the Inflation Reduction Act. This incentive, designed to stimulate investment in energy communities, provides additional tax benefits for projects located in areas that have been historically reliant on fossil fuel industries. The inclusion of this bonus in KCE’s projects underscores the company’s commitment to supporting sustainable energy development while also contributing to the revitalization of local communities.
The completion of these two projects and the successful ITC transfer are key milestones in Key Capture Energy’s ongoing efforts to expand its battery energy storage portfolio. The ITC transfer, which is part of the broader policy framework established by the Inflation Reduction Act, has become an important financial tool for the development of Battery Storage clean energy projects across the United States. The transfer allows companies like KCE to monetize the tax credits associated with their projects, making it easier to secure financing and accelerate development timelines.
The ITC transfer process also highlights KCE’s expertise and leadership in the financial and operational aspects of energy storage development. KCE is one of the most experienced operators in the ITC transfer market, having completed its first transaction in December 2023. This transaction further solidifies the company’s position as a key player in the rapidly growing energy storage market and demonstrates its ability to leverage innovative financial strategies to support its development initiatives.
In addition to the commercial success of the Texas projects, KCE’s development pipeline continues to grow at a rapid pace. The company currently operates over 620MW of utility-scale battery energy storage facilities and has a development pipeline that exceeds 10,000MW of potential projects across the country. This expansive portfolio positions KCE to play a central role in the ongoing transformation of the U.S. energy grid, helping to enable the widespread adoption of renewable energy sources while ensuring the reliability and resilience of the grid.
“We are thrilled to see the success of these projects and the positive impact they are having on the energy grid,” said Hayes. “As the energy transition accelerates, we are committed to working with our partners and stakeholders to continue developing and deploying innovative Battery Storage energy storage solutions that will help shape the future of the U.S. energy landscape.”
The successful completion of these projects also highlights the critical role that collaboration plays in advancing the clean energy transition. KCE has worked closely with a range of partners, including utilities, investors, and regulatory agencies, to bring these projects to fruition. This collaborative approach ensures that the company can leverage the collective expertise and resources of all stakeholders to achieve the best possible outcomes for the Battery Storage energy grid and local communities.
The financial advisor to KCE for this ITC transfer transaction was CRC-IB, a full-service investment bank specializing in sustainable energy. CRC-IB’s expertise in project finance and capital markets has been instrumental in helping KCE navigate the complex financial landscape of the energy storage industry. KCE was also represented by Clifford Chance US LLP, a leading global law firm that provides comprehensive legal services across the energy, infrastructure, and finance sectors.
The buyer of the ITCs was advised by TReK Capital Partners, a tax credit investment firm that focuses on renewable and clean energy. TReK’s unique approach to tax credit investments allows it to provide tailored financial solutions for projects that support the Battery Storage clean energy transition. TReK’s team of experts worked closely with both KCE and the buyer to ensure that the transaction was structured in a way that maximized the benefits for all parties involved.
Looking ahead, Key Capture Energy is poised to continue its leadership in the energy storage sector. The company is committed to advancing the development of energy storage technologies and solutions that can support the broader adoption of renewable energy sources. As part of its vision for the future, KCE is focused on expanding its portfolio of battery energy storage projects, with a particular emphasis on supporting grid resilience and enabling the integration of clean energy into the U.S. energy grid.
KCE’s achievements in Texas are part of a broader national effort to expand energy storage capacity and accelerate the clean energy transition. Battery energy storage is an essential component of the modern energy grid, providing a flexible and scalable solution to the challenges of integrating renewable energy sources. By leveraging innovative financial tools like the ITC and working with a diverse set of partners, KCE is helping to build the infrastructure needed to support a clean, reliable, and sustainable energy future.
