US-based energy infrastructure company SMT Energy has entered into a new equity partnership with Climate Adaptive Infrastructure (CAI) for investment of up to $268m at the parent-company level.
This latest agreement follows a previous $32m capital deployment by CAI into SMT assets.
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The funding is set to support the construction, development and operations of battery energy storage projects across the US.
According to SMT Energy, the capital provided by CAI, when combined with additional project finance sources such as tax equity and project-level debt, is expected to facilitate the delivery of energy infrastructure projects.
The total value of these projects is expected to significantly exceed the direct equity investment.
SMT Energy’s portfolio is comprised of distributed-generation battery storage, powered land projects and utility-scale battery storage, all with the aim of strengthening grid reliability amid rising national power demand.
SMT Energy co-founder and co-CEO JJ Switzer said: “This partnership is a defining milestone for SMT Energy. CAI gives us the capital and support needed to move faster and build at greater scale. We are grateful to Bill Green and the entire CAI team for their confidence in our platform and our people.”
CAI stated that its investment forms part of its strategy to back infrastructure platforms that can address increasing requirements for energy resilience and reduced carbon emissions.
Battery energy storage was highlighted by CAI as a complement to renewable energy sources and a cost-effective route to meeting rising electricity needs.
CAI managing partner Bill Green said: “CAI is relentlessly focused on the macro trends driving the future of global infrastructure, and this investment in SMT fits squarely into a key CAI inevitability: as wind and solar proliferate as the most efficient and fastest ways to deploy new power, battery energy storage is increasingly critical for grid stabilisation.
“We are proud to back a team with such an impressive track record as they scale into the next phase of growth.”
Expedition Infrastructure Partners acted as financial adviser to SMT Energy. Legal counsel for SMT Energy was provided by Stoel Rives, while CAI was advised by Orrick.
