Flatiron Energy has closed financing of about $540 million from multiple financial institutions for the 200 MW/800 MWh Taft battery energy storage system (BESS) project in Uxbridge, Massachusetts. The project is expected to begin commercial operations in late 2026. The financing package includes construction and bridge loans, term loans, letter of credit facilities, a preferred equity commitment, and a tax credit transfer commitment.
The debt facilities were arranged by a consortium of banks, with First Citizens Bank and Nord/LB acting as coordinating lead arrangers. Societe Generale, Santander, and Investec served as joint lead arrangers, with Societe Generale also taking the role of green loan coordinating agent and Santander acting as hedging coordinator. The preferred equity commitment came from funds managed by an unnamed global credit asset manager with more than $350 billion under management.
Recently, Flatiron Energy signed a multi-year supply agreement with SK On. As a part of the agreement, SK On will provide up to 7.2 GWh of battery energy storage system capacity for Flatiron’s utility-scale projects across New England and other states through 2030. SK On will first deliver containerised BESS units with 1 GWh of lithium iron phosphate (LFP) batteries for a project in Massachusetts for which the deliveries are expected to begin in the second half of 2026.
REGlobal’s Views: The US is witnessing a tremendous rise in energy demand from data centers. Further, the country has an aging thermal power plant fleet, and some of them are expected to retire soon. Thus, many US states, including Massachusetts are opting for battery storage projects to meet this demand as BESS can be brought online very quickly. Moreover, BESS can also help in providing grid stability especially with rising solar power penetration in the grid.
