Cypress Creek Energy has announced financial close on the first two phases of the three-phase Steel River Energy Center in Arkansas. The company on June 11 said it secured $3.5 billion in financing for the project. Phase 1 and Phase 2 combined will feature 1.63 GW of solar power along with 1.9 GWh of battery energy storage.
The installation is considered among the largest solar+storage builds in the U.S. When the third phase is complete, expected in 2029, the project will have 2.45 GW of solar power generation capacity and 2.9 GWh of battery storage, according to the company.
“This financing reflects both the scale of the project and the strong support we’re seeing from the capital markets for high-quality energy infrastructure projects backed by experienced sponsors,” said Kevin Smith, CEO of California-headquartered Cypress Creek Energy. The company also has a corporate office in Durham, North Carolina. “We value the confidence and partnership of this exceptional group of financial institutions, many of whom we’ve worked with across prior transactions. Together, we’re advancing infrastructure that can help meet Arkansas’s and America’s rapidly growing electricity demand while delivering long-term economic benefits to local communities.”
Cypress Creek noted the project was focused on American-made materials, including structural steel, which it said was mostly sourced from Mississippi County, Arkansas. The company said the project also will use 100% domestically manufactured solar panels from First Solar, along with other key components sourced from Arkansas-based companies. Cypress Creek said the project is expected to create about 700 construction jobs.
Smith told POWER, “There’s a lot of talk about strengthening American supply chains. We’re doing it. This is one of the largest solar and storage projects in the country, and it’s being built with 100% U.S.-made solar panels and structural steel, nearly all sourced right in Arkansas.”
Several Banks Involved
Cypress Creek Energy is an independent power producer. It develops, finances, owns, and operates utility-scale and distributed energy infrastructure, including solar, storage, and firm capacity solutions, to serve utilities, communities, and large-load customers. The company has commercialized 19 GW of projects, and has a portfolio of more than 6.8 GW of operating and under-construction assets. It also has a 19-GW development pipeline of new projects planned for construction over the next few years. The company’s operations and maintenance platform, Cypress Creek Solutions, operates and maintains more than 8.6 GW of energy assets across 24 states.
Cypress Creek on Thursday said the project’s financing was fully underwritten by initial coordinating lead arrangers Barclays, BNP Paribas, Santander, and Wells Fargo. The company also said that concurrent with the construction financing, it closed tax equity financing with an undisclosed major tax equity investor. The group also said long-term power sales for Phases 1 and 2 have been secured through a virtual power purchase agreement with an investment-grade corporate counterparty.
The company said Barclays served as coordinating lead arranger, joint bookrunner, and Green Loan Agent for Steel River, while BNP Paribas served as coordinating lead arranger, joint bookrunner, and hedge coordinator on the project. Santander was coordinating lead arranger, joint bookrunner, and administrative agent; Wells Fargo acted as coordinating lead arranger, joint bookrunner, hedge coordinator and Green Loan Agent.
Andrew Platt, head of Energy Structured Finance & Advisory US for Santander Corporate & Investment Banking, said, “We are proud to have led the financing for these landmark projects and to have supported Cypress Creek Energy throughout every stage, from development through construction. We value our strong relationship and congratulate Cypress Creek Energy and its partners on this significant achievement.”
Alok Garg, head of Project & Asset Finance with Wells Fargo Corporate & Investment Banking, said, “Wells Fargo is pleased to support Cypress Creek Energy as they pursue their strategy to build large-scale energy infrastructure to satisfy growing electricity demand.”
—Darrell Proctor is a senior editor for POWER.
