Spearmint Energy has engaged Barclays to look into going public via a special purpose acquisition vehicle (SPAC), said sources familiar with the situation.

While Spearmint has successfully commercialized and sold down a fleet of ERCOT storage projects, its options to raise capital had started to narrow in recent months to support its next pipeline of batteries in contracted markets, as well as other projects in Texas.

At the same time, one of its pioneers Richard Cardone, stepped down as the company’s chief operating officer.

Spearmint declined to comment on the SPAC process but offered a statement with respect to Cardone’s departure.

“After much consideration, it was mutually agreed that Richard would be stepping down from his role as COO. Richard has served the Company since inception as one of the founding members of the executive team and has been a vital part of our success.”

Spearmint Energy hired Bank of America in late 2024 to do an equity raise, with plans to run a formal process in early 2025. As the process advanced, the company also looked at raising preferred equity amongst its capital markets solutions.

However, there were market rumors that the process got deferred as bids failed to meet the asking price from its sponsors, despite the potential for future opportunities and institutional relationships it forged early on to support the build out of its ERCOT portfolio with the likes of Aiga Capital Partners, Elda River, Nuveen and Manulife.

Spearmint and Barclays declined to comment on the situation.

Regional challenges

Spearmint has pipeline opportunities in contracted storage markets, but its road has hardly been easy.

Spearmint Energy remains in the process of getting a site and route permit for the 150 MW Midwater Energy storage project and associated 161 kV transmission line in Freeborn County, Minnesota. The Minnesota PUC indicated on its website that the project was forecasted to start construction in 1Q27 and commercialize by the end of 2027.

Spearmint had also pursued permitting for projects in Brookings County, South Dakota and Franklin County, Massachusetts,

NPM Interconnection queue data identified queue applications for storage projects in both regions had been withdrawn: a 100 MW project in Franklin County, and the second, a 175 MW project in Brookings County.

The company is also continuing to develop in Texas, recently executing an amended interconnection agreement on its planned Royal River BESS project in Brazoria County with Centerpoint Energy, according to NPM SIGNALS.