NEWPORT BEACH, Calif.--(BUSINESS WIRE)--esVolta, LP, a leading developer, owner and operator of utility-scale battery storage projects in North America, today announced that it has closed a tax equity investment with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, to finance its Santa Paula Energy Storage project.
The new tax equity financing will support the completion of a 30 MW / 60 MWh battery project currently under construction about 60 miles northwest of Los Angeles. The project is expected to enter commercial operations later this year to deliver reliable electric capacity, energy, and other ancillary services to the California electric grid, including long-term contracts with a major energy commodity firm and several California electric community choice aggregators.
esVolta and Impact Finance are among the first partners to structure tax equity taking advantage of the tax credits for standalone energy storage enabled by the passage of the Inflation Reduction Act in 2022.
"The Santa Paula transaction constitutes esVolta’s first tax equity transaction. We are grateful for U.S. Bank’s leadership and innovation displayed in executing this milestone financing for our company," said Randolph Mann, President of esVolta, LP.
“Generate acquired esVolta in July of 2022 to help scale utility-scale storage as a critical enabler of the infrastructure transition. Our tax equity team is excited to partner with U.S. Bank to finance standalone battery storage systems, support grid resilience and deliver clean energy in California,” said Scott Jacobs, CEO and Co-founder of Generate Capital.
"We are deeply dedicated to our work in supporting sustainability and green infrastructure,” said U.S. Bancorp Impact Finance Director of Renewable Energy Investments Darren Van’t Hof. “Because we combine purpose and profitability, intentionally considering social and environmental impact, we are glad to be a part of this project.”
The transaction was facilitated by Orrick Herrington & Sutcliffe LLP as legal adviser for esVolta and Leverage Law Group, LLC as legal adviser for U.S. Bank.
Founded in 2017, esVolta, LP is a leading developer, owner, and operator of utility-scale energy storage projects across North America. The company’s portfolio of operational plus contracted projects totals over 1,600 megawatt hours of storage capacity, and the firm is developing a large pipeline of future storage projects. Additional information about esVolta is available at www.esVolta.com.
Generate Capital, PBC is a leading sustainable infrastructure company driving the infrastructure transition. Generate builds, owns, operates and finances solutions for clean energy, transportation, water, waste, agriculture and smart cities infrastructure. Founded in 2014, Generate partners with over 50 technology and project developers and owns and operates more than 2,000 assets globally. Generate is the one-stop shop offering pioneers of the infrastructure revolution the money and help they need to get projects built. Our Infrastructure-as-a-Service model delivers affordable, reliable and sustainable resources to thousands of customers, companies, communities, school districts and universities. Together, we are rebuilding the world. For more information, please visit http://www.generatecapital.com.
About U.S. Bank
U.S. Bancorp, with approximately 75,000 employees and $668 billion in assets as of September 30, 2023, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2023 World’s Most Ethical Companies and Fortune’s most admired superregional bank. To learn more, please visit the U.S. Bancorp website at usbank.com and click on “About Us.”