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 Alamo City battery project in Bexar County
What happened: OCI Energy has closed construction financing for a 120 megawatt (MW), four-hour (480 megawatt-hour, MWh) standalone battery energy storage system planned in southeastern Bexar County, Texas. The project, known as Project Alamo City, will serve the San Antonio area and the broader regional grid in ERCOT.
Key deal details
The financing package was arranged with ING acting as the lead financier and administrative agent. The package includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. ING served as sole coordinating lead arranger, sole bookrunner, and sole green loan coordinator for the deal.
Off-take and contract term
OCI Energy previously executed a 20-year Storage Capacity Agreement with the municipally owned utility in San Antonio, under which the developer remains responsible for bringing the project to life while the utility will have operational control as the long-term user of the storage capacity. The new project adds to the utility’s contracted storage capacity and is described as a part of its multi-year generation plan.
Project purpose and role
Project Alamo City is planned as a utility-scale battery energy storage system designed to provide grid services during peak demand, help stabilize the Texas power grid, and bolster reliability and resilience for the San Antonio community. With a four-hour discharge duration, it is intended to play a role in the utility’s longer-range generation strategy.
Partners, equipment and local benefits
The development brings together OCI Energy, the local utility, and LG Energy Solution Vertech. The LG unit is expected to supply the battery hardware, system integration and control technology, and long-term services. OCI also pledged a contribution to a local university to support educational work tied to the project.
Timeline and commercial operations
Target commercial operation dates vary in different project statements. One timeline points to commercial operation in the third quarter of 2027, while other references indicate late 2026 or a 2027 target depending on final agreements and implementation steps. The exact in-service date depends on completion of remaining contractual and permitting steps.
Context in Texas
Texas has seen rapid growth in grid-connected battery capacity in recent years. The new storage project is set against broader moves by the local utility to add a mix of generation and firming capacity under its multi-year plan, which includes both new natural gas and contracted renewable resources alongside storage additions.
About the developer and financier
OCI Energy is presented as a developer and operator of utility-scale solar and battery projects with national ambitions through the rest of the decade. ING Capital LLC is a U.S. financial services unit of a global banking group and acted as the sole lead arranger and administrative agent on this financing package.
Notable uncertainties
Some public statements about the project differ slightly on who will operate and maintain the facility during its life and on the precise commercial operation date. In some descriptions, OCI is responsible for development, financing, construction, operation, maintenance, and ownership; in others, OCI handles development, financing, construction and ownership while the local utility has operational control. These points are subject to final contractual language and implementation steps.
FAQ
What is Project Alamo City?
Project Alamo City is a planned 120 MW battery energy storage system with a four-hour duration (480 MWh) to be built in Bexar County to support the San Antonio area and the ERCOT grid.
Who is paying for construction?
Construction financing has closed with a financing package arranged by ING, which includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. OCI Energy is the project developer and owner.
Who will use the storage capacity?
The project has a 20-year storage capacity agreement with the local municipally owned utility in San Antonio. Under that agreement the utility will have operational control of the resource for system needs.
When will the project start operating?
Public materials provide different target dates. One target is the third quarter of 2027, while other references indicate late 2026 or a 2027 timeframe. Final timing depends on completing remaining agreements, permits and construction milestones.
Who will supply the batteries and systems?
The project is partnering with a major battery manufacturer’s U.S. energy storage division to supply battery modules, system integration, control software and long-term services.
How will the project help the local grid?
The storage system will provide short-term energy during peak demand, offer grid services that support reliability, and help integrate variable renewable energy into the system.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is Project Alamo City?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Project Alamo City is a planned 120 MW battery energy storage system with a four-hour duration (480 MWh) to be built in Bexar County to support the San Antonio area and the ERCOT grid.”
}
},
{
“@type”: “Question”,
“name”: “Who is paying for construction?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Construction financing has closed with a financing package arranged by ING, which includes a construction-to-term loan, a tax equity bridge loan, and letters of credit. OCI Energy is the project developer and owner.”
}
},
{
“@type”: “Question”,
“name”: “Who will use the storage capacity?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The project has a 20-year storage capacity agreement with the local municipally owned utility in San Antonio. Under that agreement the utility will have operational control of the resource for system needs.”
}
},
{
“@type”: “Question”,
“name”: “When will the project start operating?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Public materials provide different target dates. One target is the third quarter of 2027, while other references indicate late 2026 or a 2027 timeframe. Final timing depends on completing remaining agreements, permits and construction milestones.”
}
},
{
“@type”: “Question”,
“name”: “Who will supply the batteries and systems?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The project is partnering with a major battery manufacturer’s U.S. energy storage division to supply battery modules, system integration, control software and long-term services.”
}
},
{
“@type”: “Question”,
“name”: “How will the project help the local grid?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The storage system will provide short-term energy during peak demand, offer grid services that support reliability, and help integrate variable renewable energy into the system.”
}
}
]
}
Key project features
| Feature | Details |
|---|---|
| Project name | Project Alamo City (Alamo City BESS / Alamo City ESS LLC) |
| Developer / owner | OCI Energy |
| Location | Southeastern Bexar County, Texas (serving San Antonio / ERCOT) |
| Capacity | 120 MW / 4-hour duration (480 MWh) |
| Contract term | 20-year storage capacity agreement with the local utility |
| Financing lead | ING (sole coordinating lead arranger, sole bookrunner, sole green loan coordinator, administrative agent) |
| Financing components | Construction-to-term loan, tax equity bridge loan, letters of credit |
| Equipment partner | LG Energy Solution Vertech (battery hardware, system integration, control tech, services) |
| Target commercial operation | Dates stated between late 2026 and Q3 2027; final timing depends on agreements and approvals |
| Community benefit | Support for grid reliability, local resilience, and a pledged educational contribution to a local university |
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 FL News
FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida 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 Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
