Frontier Power USA will deploy American-made long-duration energy storage at scale, according to an announcement from Edison-based Eos Energy Enterprises and Cerberus Capital Management.
Frontier Power USA is expected to be a purpose-built independent development and investment company that utilizes Eos’ vertically integrated technology stack to accelerate the gigawatt-scale deployment of American-made energy storage.
Eos Energy Enterprises is a leading innovator in designing, manufacturing, and providing zinc-based long-duration energy storage (LDES) systems sourced and manufactured in the US.
Frontier Power USA is expected to unify three core capabilities that have historically sat across multiple stakeholders: Eos’ vertically integrated technology stack, Cerberus’s institutional capital and operating experience, and a performance wrap to be provided by Ariel Green, which underwrites Z3 performance.
The performance wrap underpins the structure and will allow project debt to achieve investment-grade characteristics at competitive terms. This combination is designed to compress the project lifecycle from commitment to first energy cycle and convert Eos’ opportunity pipeline or projects with secured interconnection and offtake into funded, under-construction assets.
Highlights of the agreement include:
- 2 GWh Firm Capacity Reservation Agreement: Eos entered a 2 GWh Capacity Reservation Agreement, securing dedicated manufacturing capacity for Frontier Power USA.
- $1.5 billion Lender-Grade Technology Performance Insurance: A 15-year non-cancellable technology performance insurance policy framework secured with Ariel Green to accelerate multi-year project bankability.
- Cerberus $100 Million Commitment: Cerberus is anchoring Frontier Power USA with a $100 million equity commitment to accelerate project deployments and is extending its existing Eos lockup through year-end 2026.
- Eos Investment: Eos is expected to fund its equity contribution through a pro rata rights offering, targeting approximately $150 million, allowing existing shareholders to maintain proportional economic interest in Eos’ participation in Frontier USA.
