Strata Clean Energy (Strata) has closed on a US$559m financing for the construction and ownership of the Scatter Wash battery storage complex in Arizona.

The 255MW/1,020MWh storage facility broke ground on January 18 and is expected to be operational by April 2025.

A consortium of leading financial institutions collaborated to secure the necessary funding for this project.

J P Morgan and Nomura acted as coordinating lead arrangers and joint bookrunners.

J P Morgan also fulfilled roles as administrative agent, depositary agent, and collateral agent.

The financing was further supported by US Bancorp Impact Finance and CoBank as coordinating lead arrangers with The Korea Development Bank and Norddeutsche Landesbank as joint lead arrangers.

Furthermore, Siemens and Regions contributed as lenders in this transformative project, and US Bancorp Impact Finance was also the primary tax equity investor.

Markus Wilhelm, chief executive at Strata Clean Energy, said: “The successful financing for the Scatter Wash battery storage complex marks a significant step forward in our mission to drive the transition to clean energy.

“This opportunity to collaborate with our financing partners to bring this critical project to fruition will create a lasting, sustainable impact on a region that struggles with grid challenges and extreme heat.”

The Scatter Wash battery storage complex will store enough electricity to power 50,000 Arizona homes during peak summer conditions for 20 years.

In May 2023, Strata forged a 20-year tolling agreement with Arizona Public Service, initiative.