In 2020, two energy storage developers working under stealth mode were looking for capital that would allow them to take the leap into full-time entrepreneurship. Davion Hill and Ed Rode - the brains behind Momentum Energy Storage Partners - have a collective 45 years of experience in the renewable energy space and boast a vast network. They had the right expertise, but lacked the funding needed to get their business and projects off the ground.
At the beginning, Davion and Ed struggled to find the right partner. They met with traditional venture capital firms that invested in clean startup technology, but not necessarily renewable energy.
"It was difficult to translate our vision and communicate the growth in the battery energy storage industry. This prevented us from getting the funding that would allow us to scale our projects and fully commit to our venture," said Ed, Partner and Co-Founder at Momentum Energy Storage Partners.
This all changed when a mutual connection introduced them to Leyline Renewable Capital in April of 2020.
Leyline Renewable Capital provides financing for the development and construction of renewable energy projects around the United States. The Momentum team caught Leyline's attention because of their extensive experience, focused mission, and track record of success across their professional careers. Additionally, as former developers, the Leyline team knew the challenges of the project development cycle, but felt that the right capital and guidance would allow the Momentum team to thrive.
In 2021, Momentum received Growth Capital financing from Leyline. Leyline's proprietary Growth Capital financial product provides funding for early-stage renewable energy development companies that lack assets or cash flow, but have a demonstrated track record in the industry from previous endeavors and a desire to grow their own business..
One of the key perks of Leyline's Growth Capital financing is the non-dilutive nature, which essentially means the founders maintain equity in and control of their firm. Ed and Davion were particularly drawn to this idea when considering their partnership with Leyline.
"We needed capital to move our projects through development, but did not want to lose control of our company through the process. A loan from Leyline allowed us to do just that," said Ed.
Leyline's funding has been instrumental in accelerating Momentum's project pipeline. "Leyline's funding has let us move very quickly in a competitive market," said Davion. The loan from Leyline has allowed Momentum to expand its team, pay land leases, finish the interconnection process, finalize permits, and tackle other moving parts in the development cycle relatively swiftly.
Leyline's funding is set to facilitate the development of up to 2 GW of stand-alone battery energy storage and solar projects, representing $2 billion in capital investments. For comparison, Momentum came into this partnership with less than 50 MW in their pipeline. The Growth Capital funding propelled the company to a pipeline 40 times its original size in two years.
Perhaps what differentiates Leyline Renewable Capital from other lenders the most is the fact that the company provides more than just capital. All funding recipients have access to technical expertise from the Leyline team.
Momentum's nimble team has taken advantage of this advisory support. For example, experts at Leyline provided Momentum with guidance on the commercial strategy for building out a pipeline of projects that has allowed Momentum to prioritize development efforts.
Both Davion and Ed are thrilled with the growth that Leyline has brought to their relatively new firm. Plus, they have the peace of mind that the expertise and quality of the Leyline team is behind them.
"If we meet Leyline's standards, we meet the industry standards," said Davion.
About Momentum Energy Storage Partners
Momentum Energy Storage Partners conducts the entire development process from inception to commissioning. After Notice to Proceed, Momentum manages supply agreements and construction funds, works with engineering firms and O&M providers, and oversees acceptance testing and commissioning processes. Momentum delivers projects with system operations that align with the project guarantees, revenue contracts, O&M plan and safety plans. Learn more about Momentum Energy Storage Partners at https://solvedbymomentum.com/.