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Cypress Creek Energy has reached financial close on the first two phases of the Steel River Energy Center
The project secured $3.5 billion in financing backed by major global lenders
The full 3-phase development is expected to reach 2.45 GW of solar and 2.9 GWh of battery storage by 2029
Cypress Creek Energy, a US-based independent power producer (IPP), has reached financial close on the initial phases of its Steel River Energy Center in Arkansas. The company secured $3.5 billion in financing for the project, which it describes as one of the largest solar and energy storage developments in the country.
The funding will be used to support the construction and long-term operation of the project's initial phases. According to the company, Phases 1 and 2, for which it has raised $3.5 billion, are expected to add 1.63 GW of solar generation capacity and 1.9 GWh of battery energy storage to the regional grid. These will be followed by a 3rd phase.
The company said the financing process attracted strong interest from lenders and was fully underwritten by Barclays, BNP Paribas, Santander and Wells Fargo. In addition to the construction financing, Cypress Creek closed a tax equity financing transaction with an unnamed investor.
“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 Cypress Creek Energy CEO Kevin Smith who joined the company earlier this year (see Former Arevon Energy CEO Joins Cypress Creek Renewables).
It has secured long-term power sales for the initial 2 phases through a virtual power purchase agreement (VPPA) with an investment-grade corporate customer.
Once fully built, the project is expected to have a total capacity of 2.45 GW of solar power and 2.9 GWh of battery storage by 2029 to support growing electricity demand in the region.
It estimates the project to generate nearly $300 million in tax revenue over its lifetime and create about 700 construction jobs, in addition to indirect economic activity in the surrounding region.
According to Cypress Creek, the project will use 100% US-made structural steel, much of it sourced from Mississippi County, Arkansas, and domestically manufactured solar panels supplied by First Solar. The company currently has over 6.8 GW of operating and under-construction assets and a 19 GW development pipeline of new projects planned for construction over the coming years.
