NIPOMO, Calif., Nov. 25, 2024 (GLOBE NEWSWIRE) — Fengate Asset Management (Fengate) and Alpha Omega Power (AOP) are pleased to announce the closing of a tax equity commitment with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, on the Caballero Energy Storage project (Caballero) to provide clean, resilient energy to the California grid.
Caballero marks the first investment by Fengate and AOP, which formed a development partnership in 2023 to develop, acquire and operate battery energy storage system (BESS) projects. The partnership acquired the 400-megawatt hour (MWh) contracted BESS project from Origis Energy and closed construction and term debt with MUFG Bank.
Fengate is managing this investment on behalf of the Fengate Infrastructure Fund IV and its affiliated entities, including an investment by the LiUNA Pension Fund of Central and Eastern Canada.
When construction is complete, the six-acre project will provide enough energy from clean sources to power more than 100,000 homes for up to four hours during peak electricity demand periods every day, displacing reliance on thermal generation and abating carbon.
“This investment reaffirms Fengate’s commitment to moving the needle on the energy transition and bringing much needed reliable renewable capacity to the California grid,” said Greg Calhoun, Managing Director, Infrastructure Investments at Fengate. “Caballero is a strong first investment for our development partnership and we look forward to growing our portfolio of BESS projects with AOP.”
With battery-stored energy accessible on-demand, Caballero will enhance grid resiliency during hours when solar power is coming offline and safeguard the grid against the impacts of extreme weather events.
“As California looks to achieve its sustainability goals, battery storage is an essential component to ensure grid reliability and facilitate further renewable energy adoption,” said Paul Choi, Founder and CEO of Alpha Omega Power. “We are proud to partner with Fengate to invest in critical infrastructure like Caballero to provide reliable, clean power to communities across the state.”
The project is expected to achieve commercial operations in early 2025.
About Fengate
Fengate is a leading alternative investment manager focused on infrastructure, private equity and real estate strategies, with more than US$7 billion of capital commitments under management. The firm has been investing in infrastructure since 2006 with a focus on mid-market greenfield and brownfield infrastructure assets in the transportation, social, energy transition and digital sectors. Fengate is one of North America’s most active infrastructure investors and developers with a project portfolio of more than 45 assets, valued at over US$14 billion. Learn more at www.fengate.com.
About Alpha Omega Power
Alpha Omega Power supports the full spectrum of battery storage development and operations, including power market analysis, site prospecting, strategic siting and permitting, pre-construction, EPC, and commercial operations. AOP is committed to deployment and oversight throughout the project life, from inception to operations and eventual decommissioning. Its solutions enhance grid reliability, support renewable energy integration, and contribute to a cleaner, sustainable energy future. Alpha Omega Power is comprised of a team of skilled professionals and industry experts with decades of experience in the power and battery industry and uniquely understands the problems facing our evolving power grid. Alpha Omega Power is backed by Fengate and commenced operations in March 2023. Learn more at www.aoprenewables.com.
Media Contact
Maddison Sharples
Director, Marketing and Communications, Infrastructure
Fengate Asset Management
+1 416-254-3326
[email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0d46f30a-b309-496d-984d-ef164b073043