OCI Energy And ING Secure Financing For Texas’ Alamo City Battery Project, 480 MWh Storage For CPS Energy

OCI Energy has successfully completed the construction financing for Project Alamo City, a major battery energy storage system currently under development in Bexar County, Texas. The project is designed with a planned capacity of 120 megawatts and a four-hour duration, positioning it as one of the largest standalone battery storage installations in the state. Project Alamo City is expected to play a key role in strengthening grid reliability and supporting the long-term energy needs of the region.

For this project, OCI Energy partnered with ING, which underwrote the construction financing package. The financing includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. ING is acting as the sole coordinating lead arranger, sole bookrunner, sole green loan coordinator, and administrative agent. OCI Energy highlighted that the close collaboration with ING was instrumental in moving Project Alamo City from concept to construction.

According to Sabah Bayatli, President of OCI Energy, Project Alamo City represents a significant step forward in enhancing grid stability and ensuring long-term energy reliability. Bayatli also emphasized that the project marks OCI Energy’s return as a developer-owner-operator in the project finance space, with the partnership with ING playing a key role in bringing the project to fruition.

Sven Wellock, Head of Renewables and Power, Americas, at ING, noted that the successful financing demonstrates the strength of the partnership between OCI Energy and ING Capital. He added that the project not only advances the deployment of advanced battery storage technology in Texas but also reflects the power of innovative financing to accelerate the energy transition. The project is expected to provide lasting benefits to both the local community and the broader energy market.

OCI Energy has previously executed a 20-year Storage Capacity Agreement with CPS Energy, the largest municipally-owned electric and gas utility in the United States. Under this agreement, OCI Energy is responsible for the development, financing, construction, and ownership of Project Alamo City, while CPS Energy will maintain operational control. The project brings together an experienced team to ensure its success. LG Energy Solution Vertech will supply the advanced battery technology, Elgin Power Solutions will serve as the engineering, procurement, and construction contractor, and Black & Veatch will act as technical advisor.

Renewable Guard is providing property and casualty insurance brokerage services, while Foley & Lardner LLP served as legal counsel to OCI Energy and Skadden, Arps, Slate, Meagher & Flom LLP represented ING. Project Alamo City is scheduled to enter commercial operation in the third quarter of 2027 and is expected to become a key component of Texas’ energy infrastructure.