NORD/LB and GridStor Announce Completion of $50 Million Letter of Credit Facility
Financing supports GridStor's nationwide development pipeline of battery energy storage facilities for utility and data center customers
GridStor, a developer and operator of utility-scale battery energy storage systems, announced today that it has closed a $50 million letter of credit with NORD/LB in support of its development goals. GridStor's project pipeline includes over 3 GW of projects across the western and central U.S. in later-stage development or under construction. Backed by Goldman Sachs Asset Management, GridStor has also made 450 MW of late-stage project acquisitions year-to-date for facilities in Texas, Oklahoma, and Arizona.
"We are proud to continue our partnership with NORD/LB as we develop battery energy storage projects across North America," said Chris Taylor, CEO of GridStor. "We appreciate their commitment, which enables us to unlock the capital we need to accelerate projects to meet the urgent needs of utility and data center customers."
Battery storage assets are expected to remain a significant asset class in the broader energy sector, and a critical solution to strengthening the American electrical grid as data centers and other large power users require more electricity for commercial activities.
"NORD/LB is pleased to continue our work with GridStor through leading the financing of a development LC Facility. We are excited to support GridStor's growth as they continue to develop their pipeline of battery storage projects, bringing greater energy reliability to markets with high energy demand," said Sondra Martinez, Head of Project Finance-Origination at NORD/LB.
NORD/LB previously closed a $55 million debt financing agreement with GridStor to complete the development of Goleta Energy Storage, a 60 MW/ 160 MWh stand-alone battery energy storage facility in Santa Barbara County, California.
"We have taken proactive steps to ensure tax credit eligibility for our project pipeline, and we anticipate more later-stage project acquisitions to provide cost-effective solutions to utility and data center customers," said Frank Burkhartsmeyer, CFO of GridStor. "Partnering with NORD/LB increases our agility to execute rapidly when we see new opportunities that align with our strategic goals."
NORD/LB is a leader in financing storage assets as well as more broadly providing flexible, forward-looking financing solutions in support of ESG assets across North America, Europe and Asia-Pacific regions.
About GridStor
GridStor strengthens America's power system reliability by building and operating battery projects, storing electricity to deliver when and where it's most needed. GridStor develops, acquires, and operates utility-scale, standalone battery storage projects primarily across North America. Visit us at www.gridstor.com and on LinkedIn.
About NORD/LB
NORD/LB Norddeutsche Landesbank is one of the leading German commercial banks. The core business segments include business with corporate customers, private and commercial customers including private banking as well as special finance in the energy and infrastructure sector, and commercial real estate finance. The bank is headquartered in Hanover, Germany with branches in London, New York and Singapore.
About Goldman Sachs Asset Management
Goldman Sachs Asset Management is the primary investing area within Goldman Sachs (NYSE:GS), delivering investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, alternatives and multi-asset solutions. Goldman Sachs oversees approximately $3.1 trillion in assets under supervision as of September 30, 2024. Follow us on LinkedIn.
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