OCI Energy closes financing for Alamo City battery storage

OCI Energy secures construction financing for 120 MW / 480 MWh battery project in Bexar County

OCI Energy has closed construction financing for Project Alamo City, a standalone utility-scale battery energy storage system planned in southeastern Bexar County, Texas. The system is sized at 120 megawatts with a four-hour duration capacity totaling 480 megawatt-hours. The project will operate under a 20‑year storage capacity agreement with the municipal utility serving San Antonio and is intended to provide grid services during peak periods and improve local energy resilience.

Financing and lead bank

ING was selected by OCI Energy to underwrite the construction financing package and served as the sole coordinating lead arranger, sole bookrunner, and sole green loan coordinator. ING will also act as the administrative agent. The financing package includes a construction-to-term loan, a tax equity bridge loan, and letters of credit to support project delivery.

Commercial terms and roles

OCI Energy is the project developer, owner and operator on record. Under the previously executed 20‑year Storage Capacity Agreement, OCI Energy will be responsible for development, financing, construction, and ownership of the project while CPS Energy—the largest municipally owned electric and gas utility in the United States—will have operational control once the asset is in service. Some project descriptions also indicate OCI Energy will handle operation and maintenance, reflecting slightly different wording used in public material. These operational and contractual details are subject to implementation of the agreements that underpin the arrangement.

Timeline and commercial operation outlook

The project’s stated target for commercial operation varies across materials. One timeline cites a target of third quarter 2027, while other references suggest the asset could be operational by late 2026 or generally sometime in 2027. Final timing is contingent on completing remaining implementation steps and relevant agreements.

Technology and partners

OCI Energy, CPS Energy, and LG Energy Solution Vertech signed a memorandum of understanding to collaborate on the Alamo City BESS. LG Energy Solution Vertech is positioned to supply the battery hardware and energy management technology, including systems integration, control software, and long-term services. The MOU was signed at a ceremony in Seoul.

Purpose and regional context

The BESS is intended to strengthen grid reliability, stabilize the regional grid during peak demand, and support San Antonio’s long-term energy resilience and sustainability goals. The project is described as a component of a broader plan by the municipal utility to add firm capacity and contracted renewable energy. The state of Texas has seen fast growth in grid-connected battery capacity over recent years, and the new project adds to that expanding storage footprint.

Community and broader impacts

The project will contribute to contracted capacity for the municipal utility and is linked to a larger generation plan that includes natural gas, wind, and solar elements. OCI Energy also pledged a monetary contribution to a local university for educational initiatives connected to the project and community development.

Company backgrounds

OCI Energy is presented as a developer, owner and operator of utility-scale solar and storage assets, with a national portfolio and plans to expand capacity in the coming years. ING Capital LLC is the U.S. financing arm acting on this transaction and provides wholesale lending and advisory services as an indirect U.S. subsidiary of a larger bank group. LG Energy Solution Vertech represents the U.S. energy storage arm of a global battery manufacturer supplying equipment and services.

Next steps and caveats

Construction will proceed under the agreed financing and contractual framework. Several public statements include differing descriptions of operational responsibilities and target dates; those differences reflect standard project-development language and the need for final implementation of agreements. Commercial operation timing will depend on permitting, supply-chain coordination, construction schedules, and the finalization of operational documents between the parties.