Bexar County, Texas, September 23, 2025
News Summary
OCI Energy has closed construction financing for Project Alamo City, a 120 MW / 480 MWh standalone battery energy storage system planned in southeastern Bexar County to serve San Antonio and the ERCOT grid. ING acted as lead financier and administrative agent on a package that includes a construction-to-term loan, tax equity bridge loan and letters of credit. The project has a 20-year storage capacity agreement with the municipally owned San Antonio utility. LG Energy Solution Vertech will supply batteries and system integration, and OCI pledged a contribution to a local university. Target commercial dates range from late 2026 to 2027.
OCI Energy closes construction financing with ING for 120 MW / 480 MWh battery project in Bexar County
What happened: OCI Energy has completed construction financing for Project Alamo City, a 120 megawatt (MW) battery energy storage system (BESS) with a four-hour duration equal to 480 megawatt-hours (MWh). The financing package was arranged by ING and includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. ING served as sole coordinating lead arranger, sole bookrunner, sole green loan coordinator, and will act as administrative agent for the facility.
Where and why:
The project is planned in southeastern Bexar County, Texas, to serve the San Antonio area and the broader ERCOT grid. OCI Energy describes the BESS as a standalone, utility-scale system intended to strengthen grid reliability, provide services during peak demand, and support local energy resilience and sustainability goals.
Key contract and roles:
CPS Energy, the municipally owned utility serving San Antonio, agreed to a 20-year storage capacity arrangement with OCI Energy. Under that agreement, OCI Energy is responsible for development, financing, construction, and ownership of the project. The agreement text also states that CPS Energy will have operational control of the asset. Other source statements describe OCI as responsible for development through long‑term operation and maintenance, so final operational roles may rely on remaining implementation steps.
Partners, supply and community commitments:
OCI Energy, CPS Energy, and LG Energy Solution Vertech signed a memorandum of understanding to collaborate on deliverables for the Alamo City BESS. LG Energy Solution Vertech will supply the battery hardware, system integration, control software, and long-term services. OCI also pledged a $250,000 contribution to the University of Texas at San Antonio for educational initiatives tied to the project.
Timing and next steps:
The company states the project is slated to reach commercial operation in 2027; one statement specifies target commercial operation in the third quarter of 2027. Other source lines indicate an earlier late-2026 date or condition the start on implementation of final agreements. Construction is now financed, which clears a key hurdle; remaining steps include finalizing operational and off-take arrangements and permitting.
Context and scale:
Project Alamo City is a four-hour duration resource that expands contracted storage capacity available to CPS Energy and supports the utility’s longer-range Vision 2027 generation plan. At least one summary of CPS Energy holdings indicates the new project helps push the utility’s contracted storage portfolio to roughly 520 MW. The move also comes as Texas has rapidly increased battery capacity in recent years, with statewide grid-connected storage rising dramatically.
Financing detail and market role:
The financing package structure — construction-to-term loan, tax equity bridge loan, and letters of credit — reflects a standard project-finance approach for grid-scale storage. ING’s role as lead arranger and administrative agent positions it to manage closing and transition to long-term financing. OCI Energy describes the arrangement as part of its return to developing, owning, and operating utility-scale projects and as a step toward its development target across the U.S.
Why it matters:
Large four-hour batteries provide short-term bulk energy to cover peak needs, fast-response balancing services, and support for renewable resources. For a growing city like San Antonio, the project is intended to enhance reliability during heat-driven peak loads and to provide capacity that complements gas and renewables under an evolving local plan.
Timing caveat and uncertainties:
Public material includes slightly different target dates for commercial operation and different descriptions of ongoing operational responsibilities. The most specific published target is third quarter 2027, while other lines named late 2026 or said the date depends on completion of related agreements. Those inconsistencies suggest the schedule and some operational details remain subject to final legal and permitting steps.
FAQ
What is Project Alamo City?
Project Alamo City is a 120 MW, four-hour (480 MWh) standalone battery energy storage system planned in Bexar County to serve San Antonio and the ERCOT grid.
Who is financing and building it?
OCI Energy is the project developer and owner. Construction financing has closed with ING as lead arranger. LG Energy Solution Vertech will supply batteries and integration services.
What agreements are in place?
OCI Energy has a 20-year storage capacity agreement with CPS Energy. Additional implementation and off-take agreements are expected to finalize operational control and service delivery details.
When will it operate?
The company has cited a target commercial operation in 2027, including a reference to Q3 2027, while other materials name late 2026 or note the date depends on implementation of final agreements.
How will the project help the grid?
The system will deliver energy during peak periods, offer grid-balancing services, and support renewable integration and local reliability goals under CPS Energy’s Vision 2027 plan.
Is the project connected to local education or economic benefits?
OCI Energy pledged $250,000 to the University of Texas at San Antonio for educational initiatives tied to the project. The project is also expected to support local jobs during construction and operations.
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Key features at a glance
| Item | Detail |
|---|---|
| Project name | Project Alamo City (Alamo City BESS / Alamo City ESS LLC) |
| Location | Southeastern Bexar County, Texas (serving San Antonio / ERCOT) |
| Capacity | 120 MW, 4-hour duration (480 MWh) |
| Owner / Developer | OCI Energy |
| Off-taker / Operator | CPS Energy (20-year storage capacity agreement; operational control referenced in project materials) |
| Financing | Construction-to-term loan, tax equity bridge loan, and letters of credit arranged by ING |
| Supplier / Integrator | LG Energy Solution Vertech (battery hardware, system integration, control systems) |
| Target commercial operation | 2027 (one specific target: Q3 2027); some materials reference late 2026 or note timeline depends on final agreements |
| Community support | $250,000 pledge to the University of Texas at San Antonio for educational initiatives |
Deeper Dive: News & Info About This Topic
Additional Resources
- Power Technology: OCI Energy closes financing for Alamo City battery project
- Wikipedia: OCI Energy Alamo City battery
- EnergyTech: 480 MWh Alamo City battery storage project
- Google Search: Alamo City 480 MWh battery storage
- SolarQuarter: Texas energy leaders unite for 120 MW grid-strengthening battery storage project
- Google Scholar: 120 MW battery storage Texas
- Power Technology: Eolian two BESS facilities for CPS Energy
- Encyclopedia Britannica: battery energy storage ERCOT
- Dignity Memorial: Rachel Bess obituary
- Google News: Project Alamo City OCI Energy
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
