Lydian Energy has secured $233m in its inaugural institutional project financing to support three battery energy storage system (BESS) projects in Texas.
ING and KeyBank are backing the projects in the ERCOT power market, which is experiencing rapid growth.
ING is financing the Pintail and Crane projects, located in San Patricio and Crane Counties, Texas, with a combined capacity of 200MW/400MWh and an investment of approximately $139m.
KeyBank is providing $94m for the Headcamp project, a 150MW/300MWh facility in Pecos County, with KeyBanc Capital Markets structuring the financing.
The projects are part of Excelsior Energy Capital’s Fund II, which recently surpassed $1bn. They align with Lydian’s strategy to enhance grid performance in critical power markets through the delivery of reliable and affordable renewable energy.
The facilities are under construction and are expected to be operational by the fourth quarter of 2025.
Lydian Energy CEO Emre Ersenkal said: “This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve.”
Tax credit bridge financings from ING and KeyBank are supported by co-investment capital from Excelsior’s Fund II limited partners.
Lydian is seeking additional financing for a broader array of projects anticipated to commence construction later this year.
The company’s current portfolio includes 20 solar and storage projects with a total capacity of 4.7GW.
Lydian Energy continues to collaborate with banking, regulatory, and community stakeholders to develop infrastructure that meets regional needs and policy goals.
Lydian Energy CFO Basilio Guerrero said: “We are happy to have the support of ING and KeyBank, which recognise both the value of battery storage in today’s grid and the capabilities of our development and delivery platform.
“We are proud to partner with these leading financial institutions to help deliver the next generation of clean and reliable power in Texas.”
