Institutional fund sponsor Foss & Co. said Feb. 12 it has become the exclusive tax equity partner for the 174-megawatt Longbow battery energy storage system project in Brazoria County, Texas.

Located near Houston, the project is owned by Tokyo Gas America and is being developed by Clean Capital Partners. The project is expected to become operational in the summer of 2024.

Foss & Co. said the move marks its first foray into the transferability-flip transaction space. The project, according to a news release, represents about $118.5 million in investment tax credits.

Transferability allows companies generating certain clean energy tax credits to sell their tax credits for cash to third-parties. Only eligible taxpayers are allowed to transfer certain credits, according to the IRS. It must be paid in cash, is not eligible for inclusion in the taxpayer’s gross income and is not allowed as a deduction to the transferee taxpayer.

“Longbow BESS exemplifies Foss & Company’s commitment to driving positive change in the energy landscape,” said Bryen Alperin, partner and managing director for Foss & Co. “Our tax equity investment in this cutting-edge project underscores our confidence in the transformative potential of battery storage for the grid.”

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