Miami-based On Energy secured $40 million to build out a battery energy storage facility in Texas.
The company announced it received construction financing from Live Oak Bank to fund the development of its 80 megawatt per hour Palo Verde portfolio project. Scheduled to come online in late 2024, the energy storage facility will help support the Electric Reliability Council of Texas' power grid, according to a news release.
"The structure underpinning the Palo Verde portfolio establishes On Energy as a serious player ... with an emerging financial capability to match our renowned technical credentials," said CFO David Fernandes.
Trending: Electric scooter company files for bankruptcy 2 years after going public
The company's Texas portfolio includes development sites and projects acquired through mergers and acquisitions in 2023.
On Energy builds and operates battery energy storage systems for airports, utilities, retail distribution centers and more. Those systems make it possible for businesses to store renewable energy, like wind or solar power, and then release it when that power is required.
The credit facility comes months after On Energy closed a $20 million series B financing round led by investment firm Ultra Capital. At the time, the company said much of that capital would be used to speed up the development, construction and operation of its project in the Electric Reliability Council of Texas, a utility that operates the state's electrical grid.
On Energy reports its storage systems can safeguard power sources during storms and other extreme weather events. As a result, it can provide a reliable energy supply to hospitals, emergency response centers and other essential infrastructure during grid outages.
In addition to its main office at 2900 SW 28th Terrace, the firm has offices in Texas, Mexico and Peru.
Related: 24 South Florida startups to watch in 2024
On Energy is also working on energy storage projects in Tampa but is not in the construction phase yet, CEO Alan Cooper told the Business Journal.
The company said it plans to make larger capital investments across the U.S. in 2024 and 2025 with the backing of Live Oak Bank, a lender that specializes in providing energy transition capital to large battery storage projects.
"Live Oak is excited to partner with On Energy and to support energy projects that bring good jobs, carbon reduction, and electricity savings to Texas,” Kevin Rooney, loan officer for Live Oak’s energy and infrastructure emerging markets team, said in a statement.
For more stories like this one, sign up for Miami Inno newsletters from the South Florida Business Journal and the American Inno network.
