• Transaction expected to be executed in 2Q or 3Q
• Entered a transaction to sell a late-stage project in Michigan
• In talks on thermal deployment for first DC site

Hecate Energy hosted an investor presentation on February 5 as it prepares go public, via a Special Purpose Acquisition Company (SPAC) later this year.

While the Chicago-based developer has made a living developing-and-selling solar and storage projects to utilities and institutional investors, it highlighted as potential growth opportunities its ability to develop data center campuses, its 9.7 GW thermal portfolio and the ability to operate and own projects as an independent power producer (IPP).

Hecate announced on January 22 that it entered a definitive business combination with the SPAC—EGH Acquisition Corporation at a USD 1.283bn enterprise valuation (EV).

Hecate’s existing shareholders will own 77% of the public company, while public shareholders will own the balance.

The transaction is expected to be completed in either the 2Q or 3Q of 2026.

The company forecasted USD 115m in adjusted EBITDA in 2026, with forecasted revenue growth in the 20%-to-30% range, and revenue backlog of USD 686m.

Hecate’s CEO Chris Bullinger, CFO Nick Bullinger and EGH executive officer Nick Lipsher were present on today’s call.

“We’ve been in high growth mode since our inception,” said Chris Bullinger, also a co-founder of the business, “adding that in assessing market and engaging in diligence discussions on access to capital, we saw the public markets as most beneficial.”

Later on the call Lipsher also added they did an extensive analysis on comps on private transactions in clean energy and concluded that the public valuation puts Hecate at USD 31 per kilowatt for its pipeline, while private transactions, on average, were being executed at the USD 74 per kilowatt range.

“It really gives public investors exposure to power development, in both scale and backlog, at an attractive entry valuation,” added Lipsher.

Solar, storage and natural gas pipeline

Hecate walked through its traditional solar-and-storage pipeline. For solar, its pipeline was 25 GW across ERCOT, MISO, NYISO, PJM, SERC and WECC, of which 10.7 GW was sold to third parties.

Later on the call, Nick Bullinger indicated that Hecate recently sold a late-stage solar project in Michigan with a repeat buyer but declined further specifics.

Hecate is in the process of constructing the 360 MW Sunfish Solar 2 project under a Build-Transfer agreement (BTA) that it has in place with Consumers Energy and that deal was telegraphed to the market in 2023.

Bullinger indicated the size of this particular project was 500 MW.

Its storage pipeline consisted of 14.1 GW across ERCOT, ISO-NE, MISO, PJM and SPP, of which 2 GW was sold to third parties.

It also said its thermal energy pipeline consisted of 9.7 GW.

With respect to its data center strategy, the Hecate executives said this stems from its strategy in 2018 to develop large projects near large transmission sites, where you can add a gas plant for reliability and a battery energy storage project for reliability. It is at present focused on co-locating thermal plants with data centers in New Mexico, Wyoming and Texas.

“Our focus is on pipeline designing, supporting energy campuses, with thermal and co-location, where we push together offtake and revenue contracts. We are in initial discussions for our first purchase order to support thermal deployment on initial site,” said Nick Bullinger.

Lender dispute

There were multiple questions lodged on the call about Hecate’s outstanding issues with its secured lender dispute which has morphed into an ongoing trial being contested in the Delaware Chancery Court where the company’s secured lender New Energy Capital filed a lawsuit staking a claim on termination fees being paid out to the company by Repsol North America Renewables to settle a disputed put option.

The case was then complicated by an intervenor motion lodged by Brazilian hedge fund Lumina Capital alleging that NEC’s loan was structurally subordinated to its loan, and it was entitled to those proceeds.

The Hecate Energy executives, nor Lipsher addressed the suit specifically, but Lipsher later said he was “aware of the issues with lenders and was confident it will be resolved close to the transaction closing.”

*This story was originally published exclusively for NPM subscribers.