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 for 120 MW / 480 MWh “Project Alamo City” BESS in Bexar County
OCI Energy has completed construction financing to build a utility‑scale battery energy storage system in southeastern Bexar County, Texas, marking a major step toward adding long‑duration storage to the San Antonio area grid. The project, known as Project Alamo City, is sized at 120 megawatts with a four‑hour duration — equal to 480 megawatt‑hours of energy capacity — and is intended to provide grid reliability and peak‑period services to the ERCOT market and the San Antonio community.
Top-line financing and partners
OCI Energy announced the financing close on September 22, 2025. The financing package was arranged and underwritten by ING Capital LLC, which served as sole coordinating lead arranger, sole bookrunner, sole green loan coordinator and will act as administrative agent. The package includes a construction‑to‑term loan, a tax equity bridge loan, and letters of credit.
Off‑take, ownership and operational roles
Under a previously executed agreement, the project carries a 20‑year storage capacity arrangement with the municipal utility serving San Antonio. Under the agreement, OCI Energy is responsible for developing, financing, constructing and owning the asset. Operational control will be exercised by the municipal utility under the terms of the arrangement, while some project descriptions indicate OCI will also handle ongoing operation and maintenance as part of its developer‑owner‑operator role.
Technology supply, local partnerships and community support
OCI Energy joined with LG Energy Solution Vertech under a memorandum of understanding to supply the battery systems, system integration, control software and long‑term services for the project. The MOU was signed at a ceremony in Seoul and is intended to marry advanced lithium‑ion hardware with energy management technology to stabilize the Texas grid. OCI also pledged a monetary contribution to regional educational initiatives at a local university as part of the project commitments.
Why the project matters
Project Alamo City is being positioned as a key element of an area generation and resiliency plan that aims to increase dispatchable capacity and support rapid load growth. The four‑hour discharge capability is designed to provide peak shaving, frequency response and other ancillary services to help maintain reliability on the ERCOT system and to support the utility’s long‑term strategy for balancing variable renewable resources.
Commercial operation timing and caveats
Target dates for commercial operation vary across project documents. The financing announcement indicates commercial operation is expected in 2027, with one specific mention of the third quarter of 2027. Other material referenced earlier included an alternate projection of late 2026 or a general 2027 timeline contingent on final implementation of related agreements. Readers should treat the 2027 target as the working expectation while noting the schedule remains subject to permitting, construction progress and final contract execution.
Context and scale
The project will add to a growing inventory of grid‑connected batteries in Texas, which has seen rapid expansion of storage capacity in recent years. The municipal off‑taker’s contracted storage capacity is reported to increase with this addition, contributing to a portfolio intended to support both short‑term reliability and a longer‑term transition plan for the community’s energy needs.
Key roles at a glance
- Developer/Owner/Operator: OCI Energy
- Lead financier/arranger: ING Capital LLC (sole coordinating lead arranger, bookrunner, green loan coordinator and administrative agent)
- Technology supplier: LG Energy Solution Vertech (hardware, integration, control software, services)
- Off‑taker / operational control: San Antonio municipal utility under a 20‑year storage capacity agreement
- Location: Southeastern Bexar County, Texas
Next steps
With construction financing in place, OCI and its partners will move into execution and construction phases, subject to permitting and ongoing contractual steps. Final commercial operation timing will depend on construction progress and the completion of remaining implementation agreements.
Frequently asked questions
What is the capacity and duration of Project Alamo City?
The project is designed for 120 MW of power with a four‑hour duration, which equals 480 MWh of storage.
Who arranged and provided the construction financing?
ING Capital LLC served as the sole coordinating lead arranger, bookrunner, sole green loan coordinator and will act as administrative agent for the financing package, which includes a construction‑to‑term loan, a tax equity bridge loan and letters of credit.
Who will operate the battery once it is built?
Under the storage capacity agreement, the municipal utility serving San Antonio will have operational control, while OCI Energy will develop, finance, construct and own the asset. Some documents also describe OCI handling operation and maintenance as part of its role as developer‑owner‑operator.
When is the project expected to enter commercial operation?
The working target in the financing announcement is commercial operation in 2027, with a specific reference to the third quarter of 2027 in some materials. Alternate references to late 2026 exist, so timing remains subject to permitting, construction and final agreement implementation.
What technology supplier is involved?
LG Energy Solution Vertech will supply battery hardware, system integration, control software and long‑term services under a memorandum of understanding with the project team.
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Key project features
| Feature | 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 |
| Duration / Energy | 4 hours / 480 MWh |
| Developer / Owner | OCI Energy |
| Lead financier / arranger | ING Capital LLC (sole coordinating lead arranger, bookrunner, green loan coordinator; administrative agent) |
| Off‑taker / operational control | San Antonio municipal utility under a 20‑year storage capacity agreement |
| Technology supplier | LG Energy Solution Vertech (battery hardware, integration, software, services) |
| Target commercial operation | 2027 (project documents reference Q3 2027 as a target; timing subject to final agreements) |
Notes: Timing and some operational responsibilities are described differently across project materials; the schedule and final roles remain subject to the execution of implementation agreements and standard permitting and construction milestones.
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
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