Storage

BESS developer NineDot secures another $225 million

BESS developer NineDot secures another $225 million
NineDot has secured another large investment to support construction of battery energy storage systems like this one in New York. (Courtesy: NineDot)

Big Apple, meet big batteries.

Brooklyn-based NineDot Energy, a developer of community-scale battery energy storage systems (BESS) in the New York City metro area, announced it has secured an additional $225 million equity capital commitment from Manulife Investment Management and Carlyle (NASDAQ: CG), NineDot’s existing institutional equity investor. Manulife Investment Management led the round with a $135 million commitment and concurrently acquired an equity interest.

“We are honored and excited to have Manulife Investment Management as a NineDot equity investor and partner,” said David Arfin, NineDot Energy CEO and co-founder. “From our first meeting, it was clear that Manulife IM understood the importance of battery storage in modernizing the urban electric grid, making it cleaner, more resilient, more equitable, and less costly. Having Manulife Investment Management and Carlyle – two of the world’s leading infrastructure investors – in our corner will truly energize NineDot’s future.”

This new equity funding is expected to allow NineDot to advance its large project pipeline in the New York City area. The cash could allow for expansion as well, both geographically and through acquisitions. When combined with previous financings from CIT, SMBC, and NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA), among others, NineDot has now secured a capital base of approximately $400 million.

“We have been believers in community-scale battery storage for a long time and are pleased to form a long-term equity partnership with NineDot Energy,” added Recep Kendircioglu, global head of infrastructure at Manulife Investment Management. “We view NineDot as the leading BESS developer in a complex but attractive market. We look forward to supporting the team at NineDot as it executes on its growth pipeline in New York and scales its business.”

In late 2022, New York Governor Kathy Hochul announced a roadmap to achieve a nation-leading 6 GW of energy storage capacity in New York State by 2030, on a path toward 100% zero-emission electricity for the state by 2040. Battery storage is a critical part of New York’s sustainable energy infrastructure, enabling more renewable energy on the grid, accelerating the retirement of the dirtiest “peaker” plants, and making the grid more stable and resilient.

NineDot is on track to achieve its goal of having 400 MW of battery storage capacity in development by the end of 2026, while adhering to stringent safety requirements specified by the New York City Fire Department. NineDot’s initial battery storage site, located in the Pelham Gardens neighborhood of the Northeast Bronx, became operational last summer. It’s a first-of-its-kind community-scale battery storage system in NYC, designed to provide power and resilience to the local grid at times of peak demand. In addition, NineDot has approximately 30 projects under construction across the New York metro area, with many more in development. A typical NineDot Energy 5-megawatt project is designed to power 5,000 New York City households for four hours on a peak summer day. From a decarbonization perspective, using the NYC Department of Buildings (DOB) emissions methodology, if a NineDot site were operating in 2022 it would be estimated to have reduced local greenhouse gas emissions by 420 tons of CO2e (carbon dioxide equivalent).