Tierra Seca and Seven Flags Intend to Commence Operations by Year-End
ST. LOUIS, MO – Sugar Creek Capital (“Sugar Creek”) successfully closed $98 million in tax equity financing for Spearmint Energy (“Spearmint”), a next-generation energy company bringing stable, secure and cost-effective energy solutions to the power grid.
Sugar Creek, a leader in impact investing within the low-income housing and renewable energy sectors, provided funding for two of Spearmint’s 100 MW / 200 MWh Battery Energy Storage Systems (BESS) — Tierra Seca and Seven Flags — located in Del Rio and Laredo, Texas, respectively.
Raj Mehta, Partner and Head of Sugar Creek’s Renewable Energy Group, commented, “Spearmint has differentiated itself as an ahead-of-the-curve leader in the energy storage space. We are delighted to serve as a financing partner for the company.”
Hampton Mallis, Partner and Managing Director at Sugar Creek Capital, added, “Tierra Seca and Seven Flags will contribute meaningfully to grid stability and resilience in Southwest Texas.”
Tierra Seca and Seven Flags will serve ERCOT’s West Zone and South Zones respectively. Both projects are expected to benefit from the volatility that arises from being located close to the natural electrical border with Mexico, combined with load growth and renewables penetration in the region.
Andrew Waranch, Founder, President and Chief Executive Officer of Spearmint, stated, “We are thrilled to secure this financing for Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure. As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
About Sugar Creek Capital
Sugar Creek Capital is a national leader in impact investing. On behalf of investors, the firm sources, underwrites, negotiates and asset manages low-income housing and renewable energy investments with leading developers.
Since its inception in 2004, Sugar Creek Capital has invested more than $1.6 billion in over 40,000 high-quality affordable housing units. Notably, the firm launched its renewable energy platform in 2024 to focus on tax equity and transferable tax credit investments in the solar, wind and battery storage sectors.
With deep industry relationships and an in-house asset management team, Sugar Creek ensures investments deliver high performance and returns. For more information, please visit: https://sugarcreekcapital.com/
About Spearmint Energy
Spearmint Energy is a leading energy company focused on developing, owning, operating and optimizing battery energy storage systems (“BESS”) to reduce grid volatility and increase system resiliency.
Spearmint currently operates a 150MW/300 MWh BESS project in West Texas and has more than 20 projects, totaling over 13GWh of capacity, under development in 10 states across 5 U.S. regions. Headquartered in Miami, with an additional office in Minneapolis, the Company employs over 70 professionals and is guided by strong values rooted in people, partnerships and the planet. For more information, please visit: https://www.spearmintenergy.com/.
Contact
Blake Schrader
Sugar Creek Capital
804-363-4575
bschrader@sugarcreekcapital.com