One of the largest solar photovoltaic and battery energy storage projects in North America just locked down one of the most robust investments in the history of clean energy financing.

Today, national independent power producer (IPP) and renewable developer Cypress Creek Energy announced the $3.5 billion financial close on Phase 1 and Phase 2 of the Steel River Energy Center, a three-phase megaproject in Mississippi County, Arkansas, that could grow to 2.45 gigawatts (GW) of solar and 2.9 gigawatt-hours (GWh) of battery storage by 2029.

The financing will support construction and long-term operation of the project’s first two phases, which will add 1.63 GW of solar and 1.9 GWh of storage to the regional grid, based in Midcontinent Independent System Operator (MISO) territory. While the project will be grid-connected, the phases financed by this deal have contracted 100% of their generation output with an offtaker- a soon-to-be-named technology company. Cypress Creek is exploring the market for an offtaker and a financier for stage three, which will cost up to $1.5 billion to construct. Phase one expects to reach first power in early 2028; all three could be online by mid-2029.

If the Steel River Energy Center reaches full scale, it will double Cypress Creek’s operating and under-construction portfolio to nearly 7 GW. The California-based IPP, captained by former Arevon chief executive officer Kevin Smith, acquired the late-stage development project from Swift Current Energy in March.

“There’s a narrative that meeting this new era of load growth requires relying on legacy energy sources like natural gas,” Smith told Factor This. “Investors don’t seem to see it that way. They stepped up on this, and they’re voting with billions of dollars for solar and storage because these technologies can be deployed quickly, cost-effectively, and at the scale needed to help meet future energy needs.”

Solar and battery storage comprised 91% of all new energy added to the U.S. grid in the first quarter of this year. In 2025, solar and battery storage accounted for approximately 85% of all new U.S. electricity generation capacity.

Smith called Steel River a huge project, not just in scale, but in what its financing says about the long-term viability of such utility-scale solar and storage endeavors, especially as the industry approaches the sunset of meaningful federal tax credits for some clean energy technologies. While the site officially reached “under construction” status before needing to comply with complex Prohibited Foreign Entity (PFE) requirements now mandated by the One Big Beautiful Bill (OBBB), it still relies heavily on an increasingly stronger American solar supply chain.

Made in America

The Steel River Energy Center, which is utilizing construction firm Moss as its solar contractor, will stay true to its moniker by leaning into a local specialty: U.S.-made steel. Mississippi County is recognized as the top steel-producing county in the country; the “Land of Steel” churns out more than 13% of total U.S. output, or about 9.5 million tons per year. The region includes five large steel mills, all operating within 30 miles of one another. That means there’s a lot of power demand nearby, and the infrastructure to support it, like transmission lines, which helps Steel River get electrified without needing to wait for reconductoring. Plus, it can get most of its steel from down the street.

“There’s a lot of talk about strengthening American supply chains, and we’re doing that on this project,” Smith boasted in his conversation with Factor This. “We’re building it with 100% US-made solar panels from First Solar… Nextpower is the tracker supplier, with 100% structural steel made in the US, and the battery supply is from LG, and those are assembled in the US as well.”

Other “key components” will be sourced from Arkansas-based companies, according to Cypress Creek. The project is expected to generate nearly $300 million in new tax revenue over its lifetime, benefiting local schools while helping fund public safety, roads, and other community priorities. Steel River is also expected to create approximately 700 on-site construction jobs, along with additional gigs supporting construction activity in the region.

MegaProject, MegaFinancing

The financing process, which Smith rightfully called “complex,” attracted interest from across the lending community and was highly competitive, reflecting strong demand for large-scale energy infrastructure projects backed by experienced sponsors.

The financing was fully underwritten by the initial coordinating lead arrangers, Barclays, BNP Paribas, Santander, and Wells Fargo. Their roles, and those of others, break down as follows:

• Barclays: Coordinating lead arranger, joint bookrunner, and Green Loan Agent
• BNP Paribas: Coordinating lead arranger, joint bookrunner, and Hedge coordinator
• Santander: Coordinating lead arranger, joint bookrunner, and administrative agent
• Wells Fargo: Coordinating lead arranger, joint bookrunner, Hedge coordinator, and Green Loan Agent
• Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates: Legal counsel to Cypress Creek Energy

Barclays and Santander acted as M&A advisors to support the transaction. Concurrent with the construction financing, Cypress Creek closed tax equity financing with a yet-unnamed major tax equity investor.

“This financing reflects both the scale of the project and the strong support we’re seeing from the capital markets for high-quality energy infrastructure projects backed by experienced sponsors. We value the confidence and partnership of this exceptional group of financial institutions, many of whom we’ve worked with across prior transactions,” summarized Smith.