Lydian Energy, an independent power producer backed by Excelsior Energy Capital, has achieved financial close for its first financing deal totalling $233m.
The deal, backed by ING and KeyBank, will support the development of three battery energy storage system (BESS) projects in Pintail, Crane, and Headcamp within the US state of Texas’ ERCOT (Electric Reliability Council of Texas) power market.
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All three ventures fall under Excelsior Energy Capital’s Fund II, which recently secured more than $1bn.
These developments align with Lydian’s strategy to enhance grid performance through reliable and affordable renewable energy sources within the state
ING is providing financing for the Pintail and Crane BESS projects, which are located in San Patricio and Crane Counties respectively. The projects, each with a capacity of 200MW/400 megawatt hours (MWh), represent a combined investment of $139m.
KeyBank provided a separate financing package worth $94m for the 150MW/300MWh Headcamp project in Pecos County. The financing was structured by KeyBanc Capital Markets.
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By GlobalDataCurrently under construction, these facilities are anticipated to commence operations in the fourth quarter (Q4) of 2025.
Lydian Energy CEO Emre Ersenkal stated: “This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve.”
The tax credit bridge financings from both banks will be supplemented by co-investment capital from Excelsior’s Fund II limited partners.
Lydian is seeking more funding opportunities to expand its portfolio with new projects expected to break ground in 2025.
Excelsior Energy Capital co-founding partner and Lydian Energy chair of the board Anne Marie Denman stated: “These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth US markets.
“We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic and affordable energy.”
In December 2024, Excelsior Energy Capital signed a multi-year 7.5 gigawatt-hour (GWh) reservation agreement with LG Energy Solution Vertech to bolster its portfolio of clean energy projects across the US.
