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Enhanced Capital Partners with Key Capture Energy to Finance One of the Industry’s First Transfers of Investment Tax Credits

January 4, 2024 Albany , NY

Enhanced Capital proudly partnered with Key Capture Energy (KCE), a leading developer, owner, and operator of battery energy storage systems, to provide financing through one of the industry’s first transfers of investment tax credits (ITCs) to a third party. The transaction involves the immediate monetization of three of KCE’s operating standalone battery energy storage projects with a total nameplate capacity of 120 MW.

Founded in 2016, KCE is a utility-scale battery storage developer focused on strategically developing and financing solar and energy storage projects in the United States.  The Company’s operating portfolio and pipeline totals over 9.6 GW as of January, 2024.

“Enhanced Capital’s collaboration with Key Capture Energy reflects our dedication to advancing clean energy initiatives through transferable tax credits and energy storage finance,” said Ed Rossier, Enhanced Capital’s Managing Director and Head of Climate Finance. “Tax credit financing for merchant batteries, microgrids, and long duration energy storage projects support a more reliable and resilient electric grid and facilitate broader adoption of renewable energy generation across our country.”

Battery energy storage is an effective way to help increase electric grid efficiency, reduce carbon emissions and air pollution, support good-paying jobs, and meet the growing demand for battery energy storage systems (BESS).  According to a SEIA report, the battery storage demand in the United States will likely increase over six-fold from approximately 18 GWh in 2022 to 119 GWh by 2030.

“This marks a historic first for Key Capture Energy that will enable immediate and future investment in our portfolio and growth in markets across the country,” said John Bresnahan, KCE’s Chief Financial Officer. “Working with Enhanced Capital to execute an industry leading ITC deal for standalone, utility scale battery storage has been a privilege, and we thank them for partnering with us to lead the transition to a clean energy grid.”

The transaction includes the transfer of ITCs from two operating projects in Texas, KCE TX 19 and KCE TX 21 in Williamson County, totaling 100 MW, and one 20 MW project project in New York, KCE NY 6 in Erie County.

About Key Capture Energy

 Founded in 2016 with offices in Albany, New York and Houston, Texas, Key Capture Energy is a leading developer, owner, and operator of battery energy storage systems and energy solution services across the United States, implementing market optimization software to create a more advanced and resilient electric grid. KCE has 623 megawatts (MW) of standalone energy storage projects in construction and operations and a development pipeline of over 9,000 MW of storage projects across the United States.

More about Key Capture Energy