The 200 MWh Fort Duncan energy storage project currently under construction is expected to be operational by summer 2025 in ERCOT territory.
Recurrent Energy, a subsidiary of Canadian Solar Inc. closed project financing and tax equity for its Fort Duncan Storage project.
German bank Nord/LB led the project financing, which includes a construction and term loan, a tax equity bridge loan and a letter of credit facility totaling $112 million. Recurrent Energy reports it also executed a $71 million tax equity partnership with Greenprint Capital, an investment and advisory firm specializing in clean energy tax credit investments.
“The Fort Duncan Storage project exemplifies how strategic investments in clean energy infrastructure can enhance grid reliability while generating strong financial returns,” said Peter DeFazio, managing partner of Greenprint Capital. “By leveraging tax equity, we’re enabling innovative energy solutions that support a more resilient and self-sufficient ERCOT grid.”
Burns & McDonnell is constructing the 200 MWh storage project, located in Maverick County, Texas. It is expected to be commercially operational by summer 2025 to support ERCOT’s peak power demand.
The storage plant will operate on a merchant basis, meaning that it will store and dispatch power in two-hour cycles to the ERCOT grid in response to market demand.
Canadian Solar’s e-Storage is supplying its SolBank energy storage systems for Fort Duncan Storage. The Chinese-manufactured batteries are utility-scale lithium-ferro-phosphate (LFP) with a 2.8 MWh energy capacity. LFP chemistry is hailed for cutting the risk of thermal runaway, which has been noted as the cause of fires in other lithium-based battery systems.
Through its subsidiary e-Storage, Canadian Solar reports it has shipped over 8 GWh of battery energy storage solutions to global markets as of Sept. 30, 2024, with a $3.2 billion contracted backlog as of Nov. 30, 2024.
Recurrent Energy set up Fort Duncan BESS LLC, as the project company and hence the name of the project. Expected to store and deliver up to 73,742 MWh of energy per year, it is estimated that it will power over 66,000 households, which is greater than the population in the county.
The project is expected to generate 75 jobs at peak construction, and two permanent jobs after completion. Recurrent Energy reports that Fort Duncan Storage will provide millions of dollars in tax revenue for the local community services.
“As Texas adds record amounts of generation to support economic growth and AI-driven demand, energy infrastructure projects like Fort Duncan Storage are making the Texas grid more reliable and resilient,” said Ismael Guerrero, CEO of Recurrent Energy.
Recurrent Energy, a subsidiary of Canadian Solar Inc., says it has developed, built and connected 11 GWp of solar projects and 3 GWh of energy storage projects across six continents. As of December 2024, the company reports that its project development pipeline includes over 27 GW of solar capacity and 68 GWh of energy storage capacity.
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