Fengate and Alpha Omega Power achieve tax equity financial close on 400MWh battery storage project in Texas

Fengate Asset Management (Fengate) and Alpha Omega Power (AOP) are pleased to announce the closing of a tax equity commitment with First Citizens Bank and East West Bank on the Vertus Energy Storage project (Vertus), a 200-megawatt (MW)/400-megawatt-hour (MWh) battery energy storage system (BESS) in Galveston County, Texas. AOP also closed construction and term debt for Vertus with MUFG Bank, NordLB, and National Bank of Canada.

Vertus is the second tax equity close by the Fengate and AOP development partnership in just over two years. Since 2023, AOP has commenced operations of a 400MWh BESS in California, is constructing Vertus, and is developing a 5,200MWh pipeline of BESS projects across Texas, California, and Southwestern United States (U.S.).

“Power demand and prices are rising, and there is only one scalable, on-demand power source that can be built in the near-term, and that is battery energy storage,” said Greg Calhoun, Managing Director, Head of Energy Transition at Fengate. “Fengate and AOP are proud to bring additional battery-stored power capacity to the U.S. through projects like Vertus and improve Texas grid resiliency and reliability.”

“Texas has endured both excessive heat and freezing weather, taxing the grid when Texans need power most. Battery storage is an essential component to ensure grid reliability,” said Paul Choi, Founder and CEO of Alpha Omega Power. “We are proud to partner with Fengate, and our debt and tax equity partners, to invest in critical infrastructure like Vertus to provide reliable, clean power to the Texas grid for communities across the state.”

Fengate is managing the investment on behalf of the Fengate Infrastructure Fund IV and its affiliated entities, including an investment by the LiUNA Pension Fund of Central and Eastern Canada.

Vertus is expected to start operations in Spring 2026.