Spearmint Energy Secures Over $250 Million to Advance Battery Energy Storage Projects in Texas’ ERCOT Market
Spearmint Energy (“Spearmint” or the “Company”), a rapidly growing energy company focused on advancing the U.S. power grid with next-generation battery energy storage systems (BESS), has successfully secured more than $250 million in financing to support the construction of two major grid-scale storage projects in Texas. This marks a significant step forward in the company’s mission to provide reliable, resilient, and sustainable energy infrastructure in a region facing surging electricity demand and increasing strain on grid stability.
The two projects, named Tierra Seca and Seven Flags, are both 100 megawatt (MW) / 200 megawatt-hour (MWh) battery energy storage systems. They are being developed in Del Rio and Laredo, respectively, two key areas within the Electric Reliability Council of Texas (ERCOT) power market—one of the most dynamic and high-demand energy regions in the United States.
A Financing Milestone for Battery Storage Growth
The financing package secured by Spearmint totals over $250 million and includes a blend of construction, term, and tax equity commitments from a group of highly regarded institutional partners.
The capital structure consists of:
- $59 million in Construction-to-Term Loan (CTL) facilities, provided by Manulife, a global leader in financial services and insurance.
- $95 million in Tax Equity Bridge Loan (TEBL) facilities, co-arranged and provided by East West Bank (EWB) and Investec Inc.—two well-established institutions with deep experience in structured energy finance.
- $98 million in tax equity commitments sourced from Sugar Creek Capital, a respected player in the renewable energy and tax equity investment space.
This comprehensive financial support will allow Spearmint to advance both projects from their current construction phase through to commissioning and operations, establishing the company as a formidable player in grid-scale energy storage.
As part of the financing arrangement, East West Bank and Investec served as Coordinating Lead Arrangers, Joint Bookrunners, and Green Loan Structuring Agents for the TEBL facilities. These roles reflect the growing importance of green finance in the development of battery infrastructure, particularly in markets like ERCOT where energy supply-demand imbalances are becoming more frequent and volatile.
Investec will also take on the role of Administrative Agent for the TEBL facilities, while East West Bank will act as Collateral Agent and Depository Bank for both the TEBL and CTL facilities, further emphasizing the collaborative nature of the deal and the importance of seamless execution in complex energy finance.
Supporting Texas’ Grid Reliability and Energy Resilience
The announcement comes at a time when Texas is under increasing pressure to strengthen the resilience of its power grid. As demand for electricity soars—fueled by population growth, extreme weather events, and the increasing electrification of sectors such as transportation and manufacturing—the ERCOT grid has emerged as a focal point for investment in energy storage. Battery systems like Tierra Seca and Seven Flags are critical tools for maintaining grid stability during peak periods and responding to supply fluctuations.
Spearmint’s Founder, President, and CEO, Andrew Waranch, underscored the significance of the financing and the strategic value of these projects.
“We are thrilled to secure this financing for Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure,” Waranch said. “As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
Building with Industry-Leading Partners and Technology
Construction of the projects is already underway, led by M.A. Mortenson Company, a nationally recognized engineering, procurement, and construction (EPC) contractor. Mortenson brings substantial experience in building utility-scale renewable and energy storage projects, and its involvement further bolsters confidence in the timeline and quality of the developments.
In terms of technology, Spearmint has selected the PowerTitan 2.0 energy storage platform from Sungrow Power Supply Co., Ltd., a leading global supplier of renewable power conversion systems and battery storage solutions. Sungrow’s PowerTitan 2.0 represents a cutting-edge integration of high-capacity lithium-ion battery systems, smart energy management software, and inverter technologies designed for seamless grid support.
Once completed and fully operational, the two projects will collectively contribute over 200 MW / 400 MWh of dispatchable energy storage capacity to the ERCOT grid. This storage capacity will enable significant peak shaving, frequency regulation, and other grid services essential for balancing intermittent renewable generation and responding to demand surges.
A Testament to Strategic Financial Partnerships
Spearmint’s Chief Financial Officer, Cory Magnuson, highlighted the importance of securing a robust financing package from established partners.
“Manulife, East West Bank, Investec, and Sugar Creek Capital are globally recognized investors with strong expertise in energy and infrastructure,” said Magnuson. “We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable, and affordable power to the grid.”
The deal also reflects a broader trend in the energy transition space, where capital providers are increasingly directing resources toward technologies that support grid modernization and decarbonization. The tax equity commitments, in particular, signal confidence in the continued support for clean energy from federal policy, particularly through mechanisms such as the Investment Tax Credit (ITC) which incentivizes battery storage development when paired with renewable assets.
Legal Counsel and Transaction Advisors
The successful closing of such a complex and multi-party financing required close coordination among legal advisors with deep energy and infrastructure experience:
- Paul Hastings LLP served as legal counsel to Spearmint.
- Day Pitney LLP represented Manulife.
- Milbank LLP provided counsel for East West Bank and Investec.
- Leverage Law Group, LLC advised Sugar Creek Capital.
Each firm played a vital role in facilitating negotiations, structuring documentation, and ensuring regulatory and tax compliance, enabling the financing to close on time and in alignment with project milestones.
