Greenflash Infrastructure Secures Landmark Financing for 400MW ERCOT Battery Storage Project
Greenflash Infrastructure, L.P. (“Greenflash”), a rapidly growing energy platform backed by H.I.G. Capital, has announced the successful close of an innovative and comprehensive financing package for Project Soho, a 400MW / 800MWh standalone battery energy storage system (BESS) currently under construction in Brazoria County, Texas. The project represents a major milestone in the state’s ongoing energy transition and stands as the largest standalone battery storage facility currently being built in Texas. According to the company, Project Soho is well ahead of schedule and is expected to begin energization in the first quarter of 2026 and reach full commercial operation by the second quarter of 2026.
The completion of this transaction marks a significant achievement for Greenflash, as it blends innovative debt, preferred equity, and tax credit monetization mechanisms into a single, scalable capital structure. This hybrid approach, according to the company, is designed to be replicated across Greenflash’s 5-gigawatt near-term development pipeline within the ERCOT market, underscoring its long-term growth ambitions in grid-scale energy storage.
“We designed this financing structure to be a scalable, repeatable template for our 5 GW near-term ERCOT pipeline,” said Joel Chisolm, Co-Founder and Vice President at Greenflash. “This milestone demonstrates our ability to bring together leading financial and strategic partners in support of reliable, clean energy infrastructure.”
Innovative Financing Structure
The Project Soho transaction showcases one of the most forward-looking financial structures in the U.S. energy storage sector to date. It integrates preferred equity, hybrid tax capital, and project-level debt financing into a unified framework aimed at optimizing both financial returns and project execution efficiency.
The preferred equity investment was provided by funds managed by Wafra, Inc. (“Wafra”), a global alternative investment firm specializing in long-term capital solutions, along with Acadia Infrastructure Capital, L.P. (“Acadia”), a North American investment manager focused on power and infrastructure assets. Together, Wafra and Acadia structured their investment to facilitate the sale of investment tax credits (ITCs) generated by Project Soho to a leading U.S.-based insurance company.
This structure is particularly notable because it takes advantage of the Inflation Reduction Act’s tax credit transfer provisions, which allow renewable and storage project developers to monetize ITCs directly through third-party sales, rather than relying solely on traditional tax equity partnerships. This flexibility has opened the door to more diverse sources of capital and more efficient financing arrangements for large-scale clean energy projects.
“Our ability to combine innovative hedging and financing with world-class execution allowed us to deliver a superior outcome,” said Josh Prueher, Co-Founder and Managing Partner at Greenflash. “We are thrilled to have achieved this important milestone so quickly at Greenflash, and this transaction serves as a model for our future projects in Texas and beyond.”
Debt Financing Led by Deutsche Bank
Complementing the equity and tax components, Deutsche Bank led the project’s debt financing, acting as Coordinating Lead Arranger and Sole Bookrunner. The bank’s U.S. subsidiary, Deutsche Bank Trust Company Americas, served as Administrative Agent, Collateral Agent, and Depositary Bank for the transaction.
The bank’s involvement underscores growing institutional interest in battery storage as a critical enabler of grid reliability and renewable energy integration. Battery storage projects like Project Soho are becoming increasingly vital for balancing the variable output of wind and solar generation—especially in ERCOT, where renewable penetration is among the highest in the U.S.
“We are pleased to support Greenflash on their inaugural project financing,” said Jeremy Eisman, Head of Infrastructure & Energy Financing, Americas at Deutsche Bank. “This transaction strengthens the relationship between H.I.G. Capital and Deutsche Bank, while demonstrating our continued commitment to financing well-positioned battery storage assets that enhance grid stability and reliability.”
Strategic Importance of Project Soho
Located in one of the most active and rapidly evolving energy markets in the country, Project Soho is strategically positioned to provide critical grid support services such as frequency regulation, energy shifting, and capacity support. As renewable penetration in ERCOT continues to rise, large-scale storage projects are essential to balance supply and demand, reduce curtailment of wind and solar resources, and prevent price volatility.
With its 400MW / 800MWh capacity, Project Soho is expected to store enough electricity to power hundreds of thousands of homes for several hours, significantly improving energy reliability and resilience in the region. The project also contributes to Texas’s broader goal of enhancing its energy infrastructure with flexible, low-carbon assets capable of supporting both economic growth and decarbonization targets.
Advisory and Legal Support
Greenflash was advised by CRC-IB, which served as the project’s financial advisor, helping structure and coordinate the multi-layered transaction. Legal counsel for Greenflash was provided by Troutman Pepper Locke, while Latham & Watkins LLP represented Deutsche Bank. The participation of these high-profile advisory firms highlights the transaction’s complexity and sophistication, as well as the growing role of specialized expertise in structuring storage project financings that incorporate new tax and capital innovations.
Scaling a New Model for Energy Financing
Project Soho represents more than just a single project—it is a blueprint for Greenflash’s broader strategy to develop, finance, and operate large-scale battery storage assets across the ERCOT grid and potentially other U.S. markets. The company’s focus on modular, replicable financial models enables it to attract diverse institutional investors and rapidly scale its project portfolio.
Greenflash’s partnership with H.I.G. Capital provides additional financial strength and strategic resources, positioning it as one of the emerging leaders in the independent energy storage development space. The successful closing of this financing is expected to accelerate the company’s ability to deliver over 5 GW of advanced battery storage projects in the coming years, supporting grid modernization and the clean energy transition nationwide.
