Key Takeaways
- Frontier Power USA closed an equity raise of about $263 million from Cerberus ($100 million), Eos Energy Enterprises (about $113 million) and Hudson Bay Capital ($50 million).
- The company acquired the 200 MW / 800 MWh Blanquilla battery energy storage project from Stella Energy Solutions.
- Blanquilla will use Eos Z3 long-duration systems, and FPUSA placed a $100 million purchase order for Phase 1.
- FPUSA has converted 1,280 MWh of usable capacity and continues to advance roughly 5 GWh more, against a pipeline of about 16 GWh.
- The project is expected to be financed through FPUSA equity and debt arranged through KKR Capital Markets.
Frontier Power USA Closes Oversubscribed Raise
Frontier Power USA has closed an equity capital raise totaling about $263 million, exceeding its original target. The financing came from funds and accounts managed by affiliates of Cerberus Capital Management, which invested $100 million, Eos Energy Enterprises at about $113 million, and Hudson Bay Capital Management at $50 million. The company said the capital supports its continued conversion of late-stage battery storage projects into construction-ready assets across high-growth U.S. markets.
Inside the Blanquilla Battery Project
Alongside the raise, Frontier Power USA acquired the Blanquilla project from Stella Energy Solutions, converting one of four projects selected under a strategic framework with the Woodlands, Texas developer. Blanquilla is a 200 MW / 800 MWh, four-hour system that will use Eos Z3 long-duration battery technology. The company executed a $100 million purchase order with Eos for Phase 1 under the two firms’ 2 GWh capacity reservation agreement, and Stella is expected to provide development and engineering services for the converted projects.
Financing and Insurance Structure
Frontier Power USA said Blanquilla is expected to be financed through company equity and debt arranged through its engagement with KKR Capital Markets, and to benefit from a Technology Performance Insurance framework arranged with Ariel Green. Stella has developed, built and operated more than 4.4 GWh of utility-scale battery storage, with a focus on the ERCOT market in Texas.
Frontier Power USA’s Growing Pipeline
With the Blanquilla transaction, the company has converted 1,280 MWh of usable capacity while advancing roughly 5 GWh of projects that are acquired, selected or under diligence, against an identified pipeline of about 16 GWh. The remaining three selected Texas projects are expected to convert in the third quarter of 2026. Frontier Power USA said the raise and initial purchase order support a repeatable model for acquiring, financing, building and operating battery storage.
