Energy storage developer Fullmark Energy announced the ITC transfer of $46 million to an industrial sector buyer for its operating 125 MW/290 MWh Redwood Projects portfolio. The transaction demonstrates the continued effectiveness of the Inflation Reduction Act in mobilizing private capital for renewable energy infrastructure.
The strategic ITC transfer provides Fullmark Energy with greater financial flexibility to accelerate the development of additional energy storage while strengthening operations in the Redwood portfolio of four projects in Southern California. The transaction was completed following the portfolio’s commercial operation date (COD), announced on November 7, 2025.
“This ITC transfer illustrates how the Inflation Reduction Act creates tangible pathways for infrastructure investments in American communities,” said Chris McKissack, CEO of Fullmark Energy. “By enabling direct monetization of tax credits, we channel private capital to projects that deliver measurable benefits across Southern California, such as electric grid reliability, job creation and community resiliency.
Redwood Projects’ portfolio includes four strategically located facilities with a total capacity of 125 MW connected to the Edison distribution system in Southern California:
- San Jacinto: 65MW/130MWh facility in Banning
- Johanna ESS: 20MW/80MWh facility in Santa Ana
- Desert-Carris: 20MW/40MWh facility in Palm Springs
- Ortega: 20MW/40MWh facility in Lake Elsinore
This portfolio includes multiple locations in Southern California, reducing risk and improving reliability. All four facilities participate in the California Independent System Operator (CAISO) market and provide critical network services including energy arbitrage, frequency regulation and resource adequacy capacity.
BDO USA acted as tax credit transfer advisor in this transaction.
“Tax credit transfers have become a strategic lever for accelerating clean energy deployment,” said Gabe Rubio, director of BDO. “By connecting investors and developers with aligned objectives, these transactions streamline the flow of capital and strengthen confidence in the long-term growth potential of the energy storage market.”
News item from Fullmark Energy
