Recurrent Energy has secured $513 million project financing for the 1,200 MWh Papago Storage project situated in Maricopa County, Arizona. Construction of the project is expected to begin in the third quarter of 2024 and commercial operations are anticipated to commence in the second quarter of 2025.
Furthermore, the project has a 20-year tolling agreement with Arizona Public Service Company. The company will own and manage Papago Storage after its construction. The facility will supply enough power to approximately 244,000 homes for four hours each day.
MUFG and Nord/LB served as the coordinating lead arrangers for the project’s financing, which comprises a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility. The transaction’s joint lead arrangers were Bank of America, CoBank, DNB, Rabobank, Siemens Financial Services, and Zions.
