Flatiron closes $850M financing for largest BESS on US east coast
What's the deal? Flatiron EnergyDealroom has a profile for this one. Try Dealroom → has closed roughly $850 million in construction and term financing for Energizar, a 1,200MWh battery storage project in Chelsea, Massachusetts. The package spans construction, bridge, and term loans, letter of credit facilities, a preferred equity commitment, and a tax credit transfer commitment.
Who's backing it? A consortium of banks provided the debt, with Nord L/BDealroom has a profile for this one. Try Dealroom →, SantanderDealroom has a profile for this one. Try Dealroom →, and Societe Generale as coordinating lead arrangers. InvestecDealroom has a profile for this one. Try Dealroom → and East West BankDealroom has a profile for this one. Try Dealroom → served as joint lead arrangers, Siemens Financial ServicesDealroom has a profile for this one. Try Dealroom → as lender, and East West Bank also acted as depositary.
A global credit manager with more than $350 billion in assets provided the preferred equity, while two Fortune 500 companies committed to buy a portion of the project's investment tax credits.
What's the endgame? Energizar will reach commercial operations in Q4 2027. Flatiron says it will be the largest battery energy storage system (BESS) on the US east coast and one of the largest urban BESS facilities globally, supplying capacity and peaking power to the Boston grid.
"Energizar represents the culmination of years of work by many stakeholders," said Dan Myers, Flatiron's chief financial officer. "Projects of this complexity and scale only happen because of the support of the local community, policy makers, equipment and EPC providers, offtakers, and financing counterparties."
Why now? Battery storage is becoming central to grid stability as utilities integrate more intermittent power. "Battery storage assets are playing an increasingly critical role in supporting grid stability and facilitating the integration of energy resources across the United States," said Andrew Platt, managing director at Santander.
The signal: The deal shows deep-pocketed lenders and tax-equity buyers are willing to finance large, complex urban storage projects. For the ISO New England market, Energizar marks a sizeable addition to the region's reliability and capacity resources.
Read more: pfie.com, businesswire.com
Image credit: blmcalifornia
