Panamint Capital, Xcel Energy unit sign tolling deal for Minn. battery project

Panamint Capital LLC signed a 15-year tolling agreement with Xcel Energy Inc. subsidiary Northern States Power Co. for a planned battery energy storage project in Minnesota.

The agreement is for Panamint Capital's 80-MW/320-MWh Cottage Grove Storage Project in Washington County, Minnesota. The project, which is colocated with the 265-MW Cottage Grove Cogeneration facility, is scheduled to start commercial operations on June 1, 2028.

Northern States Power submitted the deal to the Minnesota Public Utilities Commission for approval earlier in December, according to a Dec. 9 filing. (Docket Nos. E002/CN-23-212 and E002/RP-24-67)

The Cottage Grove Cogeneration facility has a 30-year power purchase agreement with Northern States Power that will end in October 2027, according to S&P Global Market Intelligence data. The facility's output will then be sold to the Basin Electric Power Cooperative under a 15-year power purchase agreement starting in December 2027.

Nevada-based Panamint Capital is a KKR & Co. Inc.-backed energy investment company that manages 3 GW of operating and development-stage conventional and renewable energy assets in North America.