Shares of Eos Energy Enterprises Inc (NASDAQ:EOSE) climbed 6.7% in premarket trading after Frontier Power USA selected four battery energy storage system projects that are slated to employ Eos’ Z3 long-duration batteries.
The selected portfolio includes the Blanquilla BESS Project, the Aransas Pass Project, the Nash Project and the Wallis Project. Together the four developments represent about 230 MW / 920 MWh of battery energy storage capacity and are being developed by Stella Energy Solutions. According to the arrangement, these projects are expected to be migrated onto the FPUSA platform for execution.
These initial projects are the first to move forward under a strategic framework between FPUSA and Stella. That framework established a route to transition Stella’s late-stage development pipeline of more than 2 GWh of BESS projects onto the FPUSA platform.
The portfolio is expected to draw on FPUSA’s previously announced 2 GWh capacity reservation agreement with Eos, with a stated emphasis on advancing American-made long-duration storage across ERCOT. FPUSA will provide 100% of construction equity for the selected projects, while Stella will act as the designated execution partner through to commercial operation.
The closing of the project selection is conditional on the successful closing of Eos’ recently announced rights offering. FPUSA’s equity capital base is currently anchored by a commitment from funds and accounts managed by Cerberus Capital Management, and it is expected to receive additional support from an investment by Hudson Bay Capital and proceeds from the rights offering.
The development plan links multiple financing and execution elements: the Eos capacity reservation, FPUSA’s equity commitments and Stella’s role in delivering construction-to-operation execution. The selection marks a step toward deploying the reserved capacity and converting late-stage projects onto a single platform, with a clear dependency on Eos’ capital raise.
Summary
Frontier Power USA has chosen four Stella-developed battery projects totaling about 230 MW / 920 MWh that are expected to use Eos Energy’s Z3 batteries. The projects are the first to proceed under a strategic framework to transfer over 2 GWh of Stella’s pipeline to the FPUSA platform. Funding hinges on FPUSA’s equity commitments and the successful closing of Eos’ rights offering.