Bitech working on ITC transfer deal for 100-MW BESS in Texas

Bitech Technologies Corporation (OTCQB:BTTC) is looking to arrange the transfer of up to USD 80 million (EUR 72m) in investment tax credits (ITCs) associated with its flagship 100-MW Project Redbird battery energy storage system (BESS) in Fort Bend County, Texas.

Bitech’s operating subsidiary Emergen Energy LLC has signed a non-binding term sheet with an unnamed renewable energy investment firm to try to arrange the transfer of the ITCs.

Project Redbird is anticipated to generate about USD 78 million by the third quarter of 2025 based on a 50% ITC as a result of the Inflation Reduction Act of 2022 (IRA), a press statement says.

“A tax credit transfer agreement would be an important milestone as we advance our flagship BESS project toward monetisation. In tandem with project equity investment or debt financing, we believe the tax credit transfer agreement will enable an initial commercial operation date in the second quarter of 2025,” said Bitech’s CEO Benjamin Tran.

Bitech further noted in the statement that expects to complete financing for its first two 100-MW BESS projects in Texas by the end of the year. The sites are expected to enter construction in early 2025.

The company plans to finance a third site next year and intends to start looking for strategic and joint venture opportunities.

(USD 1 = EUR 0.901)

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