Institutional fund sponsor Foss & Co. said Feb. 12 it has become the exclusive tax equity partner for the 174-megawatt Longbow battery energy storage system project in Brazoria County, Texas.
Located near Houston, the project is owned by Tokyo Gas America and is being developed by Clean Capital Partners. The project is expected to become operational in the summer of 2024.
Foss & Co. said the move marks its first foray into the transferability-flip transaction space. The project, according to a news release, represents about $118.5 million in investment tax credits.
Transferability allows companies generating certain clean energy tax credits to sell their tax credits for cash to third-parties. Only eligible taxpayers are allowed to transfer certain credits, according to the IRS. It must be paid in cash, is not eligible for inclusion in the taxpayer’s gross income and is not allowed as a deduction to the transferee taxpayer.
“Longbow BESS exemplifies Foss & Company’s commitment to driving positive change in the energy landscape,” said Bryen Alperin, partner and managing director for Foss & Co. “Our tax equity investment in this cutting-edge project underscores our confidence in the transformative potential of battery storage for the grid.”
Recommended Reading
Report: Freeport LNG Hits Sixth Day of Dwindling Gas Consumption
2024-04-17 - With Freeport LNG operating at a fraction of its full capacity, natural gas futures have fallen following a short rally the week before.
US NatGas Futures Hit Over 2-week Low on Lower Demand View
2024-04-15 - U.S. natural gas futures fell about 2% to a more than two-week low on April 15, weighed down by lower demand forecasts for this week than previously expected.
US NatGas Flows to Freeport LNG Export Plant Drop Near Zero
2024-04-11 - The startup and shutdown of Freeport has in the past had a major impact on U.S. and European gas prices.
US Natgas Prices Hit 5-week High on Rising Feedgas to Freeport LNG, Output Drop
2024-04-10 - U.S. natural gas futures climbed to a five-week high on April 10 on an increase in feedgas to the Freeport LNG export plant and a drop in output as pipeline maintenance trapped gas in Texas.
Freeport LNG Says Trains 1, 2 at Texas Facility May Shut Until May
2024-03-20 - Freeport LNG on March 20 said its Train 2 liquefaction unit at the Texas plant has been shut down, while Train 1 will be taken down imminently as it expects inspections and any subsequent repairs at both the units to be completed by May.