Cloudbreak Energy Partners, a national renewable energy developer and independent power producer (IPP), has closed $60 million in construction financing for the Pueblo Battery Resource, a 50-megawatt (MW)/200 megawatt-hour (MWh) battery energy storage system (BESS) in Pueblo, Colorado.
Norddeutsche Landesbank Girozentrale (Nord LB) served as administrative agent, collateral agent, coordinating lead arranger, and issuing bank for the transaction.
The financing package includes a $43 million construction loan facility and a $17 million letter of credit facility issued in favor of Black Hills Colorado Electric, a subsidiary of Black Hills Corporation.
Upon completion, the project will be sold to Black Hills Colorado Electric under a build-transfer agreement, making it the first battery storage project of its kind built in Black Hills’ service territory. Linxon US is serving as the engineering, procurement, and construction contractor.
“We appreciate the strong commitment and collaboration demonstrated by both Cloudbreak and Black Hills Energy throughout the process and look forward to building on these relationships,” said Sondra Martinez, Head of Originations Americas at NORD LB, in a statement.
The Pueblo Battery Resource will provide load balancing and grid stabilization services to communities in the Pueblo area and marks Cloudbreak’s first battery energy storage project, with additional BESS development planned across the company’s pipeline.
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