Spearmint Energy, a utility-scale battery storage project developer, has closed approximately $450 million in financing for Red Egret, a 300 MW/600 MWh standalone battery energy storage project in Texas City, Texas.

The financing package comprises a construction facility, an investment tax credit transfer, and preferred equity. Spearmint said construction has begun, and the project is expected to be completed in 2027.

The construction facility totals $225 million and will fund the project’s construction. First Citizens Bank and Investec led the banking consortium as coordinating lead arrangers and joint bookrunners. Nord/LB acted as joint lead arranger, and East West Bank acted as mandated lead arranger.

Spearmint said the construction facility will be repaid upon the project’s commencement of commercial operations. The repayment will include $96 million in preferred equity investment from Nuveen Energy Infrastructure Credit, the infrastructure credit investment platform of Nuveen, backed by TIAA. In addition, the project will receive approximately $126 million in proceeds from a commitment to transfer an investment tax credit, according to the company.

Andrew Waranch, Founder, President, and Chief Executive Officer of Spearmint, said, “As aging grid infrastructure meets unprecedented growth in electricity demand, this financing supports Spearmint’s ability to increase energy resilience in ERCOT through battery energy storage systems. Through our development of Red Egret, we are working to strengthen reliability and deliver safe, cost-effective power to homes and businesses in Texas City and throughout the Texas Gulf Coast.”
Red Egret is the fourth project built for Spearmint by Minneapolis-based M.A. Mortenson Company. It is also the company’s fourth project to use Sungrow USA Corporation’s PowerTitan platform.

Upon completion of the Red Egret project in 2027, Spearmint’s operating portfolio is expected to include over 1.5 GWh of total battery capacity across four projects, according to the company.

Previously, in 2025, the company secured more than $250 million in financing for the construction and development of two 100 MW/200 MWh Tierra Seca and Seven Flags battery energy storage projects located in Del Rio and Laredo, respectively, within the Texas ERCOT power market.

According to Mercom’s recently released Q1 2026 Energy Storage Funding and M&A report, announced Energy Storage project funding increased 115% YoY in Q1 2026, compared to $8 billion raised in the same period in 2025.