B2U Storage Solutions has brought its 28 MWh Bexar Martinez battery energy storage system (BESS) into commercial operation in Texas, with the facility now providing grid services to the ERCOT electricity market.
The project is located near San Antonio within the service territory of CPS Energy and uses repurposed electric vehicle (EV) batteries throughout the storage system. It is the second Texas project developed by B2U using its battery storage cabinets designed to accommodate second-life EV batteries.
The company said the facility is intended to provide flexibility and reliability services as electricity demand grows across the ERCOT market. The batteries are being redeployed after their initial use in vehicles, extending their operating life before eventual recycling.
With Bexar Martinez online, B2U said its portfolio providing grid services in Texas has grown to more than 50 MWh. Across Texas and California, the company is managing more than 5,000 repurposed EV batteries and operates approximately 100 MWh of storage in both standalone and solar-paired configurations.
The project also provides a commercial test of whether used EV batteries can be integrated into utility-scale storage while remaining financeable. B2U said Bexar Martinez and its other projects qualify for the domestic-content bonus under the US Investment Tax Credit and have secured third-party financing. The projects have also been acquired by B2U Infrastructure Partners.
B2U expects to deploy a further 50 MWh or more of storage capacity in ERCOT over the next six months.
Second-life batteries are attracting interest as the number of EVs entering the market increases and battery packs begin reaching the end of their useful automotive lives. Repurposing can potentially provide an additional period of grid operation before materials are ultimately recycled, although project economics depend on battery condition, system integration and the cost of competing new-build storage.
B2U CEO Freeman Hall said the Bexar Martinez project demonstrates that repurposed batteries can provide grid services at utility scale.
The project adds to the growing range of storage technologies being deployed in ERCOT, where rapidly rising electricity demand is increasing the need for flexible capacity and ancillary grid services.