#United States #New York City #Battery Storage #Natixis #NineDot Energy

Natixis Partners with NineDot Energy

In a significant move towards sustainable energy in New York City, Natixis Corporate & Investment Banking has announced the completion of a remarkable $431 million construction financing deal. This funding is dedicated to the development of a portfolio consisting of 28 battery energy storage systems (BESS) located throughout New York City by NineDot Energy. The financing will help to establish an aggregate capacity of 124 MW (equivalent to 494 MWh) of storage, crucial for bolstering the city's electric grid's reliability and sustainability.

NineDot Energy stands out as a leading developer specializing in community-scale battery storage systems, a vital component for the urban energy landscape. Their initiatives are strategically aligned within the Con Edison interconnection queue, which covers various neighborhoods including The Bronx, Brooklyn, Queens, Staten Island, and parts of Westchester County. This targeted approach underscores NineDot's commitment to enhancing energy accessibility and reliability for residents across diverse communities.

The financing structure for this venture is piloted through a combination of a construction/term loan facility, a tax-credit-transfer bridge loan, and a letter-of-credit facility. This bespoke financing arrangement has been tailored to meet the specific requirements of NineDot Energy's expansive 28-asset portfolio, showcasing an innovative approach in funding large-scale renewable energy projects.

David Arfin, CEO and Co-founder of NineDot Energy, expressed enthusiasm about this funding milestone, stating, "This $431 million construction financing package demonstrates the strength of our development pipeline and represents a significant milestone in bringing these BESS projects to fruition." He emphasized the crucial role of Natixis CIB in structuring an innovative financing solution that will assist in transitioning the New York City metro area's electric grid into a cleaner, healthier, and more cost-effective system.

Jim Kaiser, Head of Infrastructure and Energy for North America at Natixis CIB, also highlighted the importance of this partnership, stating, "We’re grateful to NineDot for entrusting us with this bespoke, high-quality financing, which supports the construction of these essential storage assets." Kaiser indicated that Natixis CIB is eager to continue offering innovative capital solutions to support NineDot’s ongoing development efforts.

Natixis Corporate & Investment Banking is a well-respected global financial institution. It provides a range of advisory services, investment banking, and financing solutions tailored to the needs of both corporate and governmental clients worldwide. The firm operates in nearly 30 countries, delivering expert advice to aid in strategic development and business transformation while promoting initiatives that align with sustainability and carbon neutrality goals by 2050.

As the importance of battery energy storage systems continues to grow within the renewable sector, projects like NineDot Energy's portfolio will undoubtedly play a vital role in the overall energy strategy of New York City. Through tailored financing solutions and collaborative initiatives, Natixis and NineDot Energy are poised to make substantial progress in creating a sustainable urban energy landscape for the future.