Energy storage developer Fullmark Energy announced the ITC transfer of $46 million to a buyer in the industrial sector for its operational 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 enhanced financial flexibility to accelerate additional energy storage development while strengthening operations across its four-project Redwood portfolio in Southern California. The transaction closed following the portfolio’s commercial operations date (COD) achievement announced on November 7, 2025.
“This ITC transfer exemplifies how the Inflation Reduction Act is creating tangible pathways for infrastructure investment in American communities,” said Chris McKissack, CEO of Fullmark Energy. “By enabling direct monetization of tax credits, we’re channeling private capital into projects that deliver measurable benefits across Southern California, such as grid reliability, job creation and community resilience.
The Redwood Projects portfolio comprises four strategically located facilities totaling 125 MW of capacity connected to the Southern California Edison distribution system:
- 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 spans multiple locations across Southern California, reducing risk and improving reliability. All four facilities participate in the California Independent System Operator (CAISO) market, providing critical grid services including energy arbitrage, frequency regulation and resource adequacy capacity.
BDO USA served as the tax credit transfer advisor on this transaction.
“Tax credit transfers have become a strategic lever for accelerating clean energy deployment,” said Gabe Rubio, a principal of BDO. “By connecting investors and developers with aligned goals, these transactions streamline capital flow and strengthen confidence in the energy storage market’s long-term growth potential.”
News item from Fullmark Energy
