DENVER & BOSTON — Flatiron Energy announced it has successfully closed on $540 million in financing commitments to construct and operate the Taft Project, which will become the largest battery energy storage system (BESS) in Massachusetts once completed in late 2026.
Located in Uxbridge, Massachusetts, the Taft Project will provide 200MW / 800MWh of storage capacity, a scale designed to bolster grid reliability and support growing demand across eastern Massachusetts. Once operational, it will play a critical role in enhancing local energy resiliency while advancing the state’s clean energy transition goals.
The financing package, which covers construction, bridge loans, term loans, letters of credit, a preferred equity commitment, and tax credit transfer agreements, reflects deep investor confidence in the project and its role in the region’s energy future.
The lending consortium was led by First Citizens Bank and Nord/LB as Coordinating Lead Arrangers, with Societe Generale, Santander, and Investec serving as Joint Lead Arrangers. Societe Generale also acted as Green Loan Coordinating Agent, while Santander served as Hedging Coordinator. A preferred equity investment was secured from a global asset manager overseeing more than $350 billion in assets, and a Fortune 500 corporation provided a forward commitment to transfer a portion of the project’s Investment Tax Credits.
Sondra Martinez, Head of Project Finance-Origination at Nord/LB, emphasized the broader significance of the deal:
“We are proud to have co-led the debt financing for Flatiron Energy's Taft Project - Nord/LB’s third stand-alone BESS financing in NE-ISO. This transaction demonstrates Nord/LB’s commitment to the BESS sector, leveraging deep industry relationships to support new clients, applying innovative structuring to advance build-outs in new markets, and fulfilling our mission to advance the energy transition while meeting energy resiliency and energy security. By bringing added firm capacity to the grid, Taft supports a cleaner, more reliable energy future for the region.”
Mike Lorusso, group head of Energy Finance at First Citizens Bank, echoed that sentiment:
“We are pleased to support Flatiron Energy in delivering a project that enhances grid reliability and benefits communities across eastern Massachusetts. Battery storage is a key enabler of the clean energy transition, and this project reflects the type of forward-looking investments we are proud to finance.”
For Flatiron, the financing marks a milestone in its mission to expand utility-scale storage. Dan Myers, the company’s Chief Investment Officer, highlighted the challenges and opportunities ahead:
“Now more than ever, addressing the demand for critical reliability infrastructure across the Northeast and Mid-Atlantic requires sophisticated and supportive capital. Working with industry-leading partners that thoroughly understand power market dynamics and locational project value is essential to providing the energy resources to these complex, differentiated, and evolving markets. The Taft project is an ideal foundational asset to advance Flatiron’s goal of building clean capacity where it’s needed most.”
Flatiron’s advisors included Orrick, Herrington & Sutcliffe LLP and Foley Hoag LLP, while Winston & Strawn LLP and Rath, Young and Pignatelli, P.C. represented the lenders. CCA Capital LLC advised on the preferred equity investment and tax credit transfer, and Riverside Risk Advisors supported hedging activities.
With financing secured, Flatiron now moves forward with construction on a project seen as pivotal not only for Massachusetts but also for the broader Northeast grid. The Taft facility is expected to serve as a cornerstone for clean energy integration, providing flexibility to balance intermittent renewable generation, reduce reliance on fossil fuels, and ensure reliable service for communities across the region.
Originally reported by Business Wire.
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