Cerberus Capital Management's FPUSA Acquires 480 MWh Bimergen Energy BESS Portfolio in ERCOT Texas
NEW YORK and NEWPORT BEACH, Calif. — May 21, 2026 — Frontier Power USA (FPUSA), a long-duration energy storage development and investment platform owned by Cerberus Capital Management, has signed an agreement to acquire a 480 MWh portfolio of battery energy storage system (BESS) development projects from Bimergen Energy Corporation (NYSE American: BESS), the companies announced Wednesday.
The transaction represents the first acquisition completed under FPUSA's exclusive project pipeline and marks the initial deployment under the platform's previously announced 2 GWh capacity reservation agreement with Eos Energy Enterprises, Inc. (NASDAQ: EOSE).
Deal Structure and Terms
The portfolio comprises three ERCOT-based projects: two "Texas 10" projects and a 100 MW / 400 MWh project for which Notices-to-Proceed are expected to begin in mid-2026. Specific project locations and addresses have not been publicly disclosed.
Under the terms of the transaction, an affiliate of FPUSA will fund 100% of the equity required for construction, pay Bimergen a development fee, and cover transaction expenses. Following the initial capitalization of FPUSA, the affiliate is expected to contribute the project companies to FPUSA. Upon that contribution, FPUSA will hold a 92.5% ownership interest in the project companies, while Bimergen will retain a 7.5% economic interest in recognition of its development contribution. Financial terms of the acquisition, including total transaction price, were not disclosed.
The projects will utilize Eos' American-made Z3 long-duration battery systems, consistent with the capacity reservation agreement between FPUSA and Eos. That agreement is designed to provide FPUSA with dedicated access to manufacturing capacity, supporting deployment certainty across its late-stage development pipeline.
FPUSA also intends to deploy a Technology Performance Insurance (TPI) framework arranged with Ariel Green to support financing of the projects. The TPI structure is intended to enhance project bankability and enable access to long-term institutional capital for construction and operations.
ERCOT Market Context
The ERCOT grid, which serves the bulk of Texas, has been cited by FPUSA as a market experiencing strong load growth. According to the announcement, this load growth reinforces the need for long-duration storage solutions that can be deployed reliably and at scale.
Execution Partners and Legal Advisors
Stella Energy Solutions is serving as execution partner on the development and delivery of the projects. Simpson Thacher & Bartlett LLP and Jackson Walker LLP acted as legal advisors to Cerberus Capital Management as owner of FPUSA. Norton Rose Fulbright LLP acted as legal advisor to Bimergen Energy Corporation.
Statements from the Parties
Aaron Maczonis, Managing Director at Cerberus Capital Management, described the transaction as reflecting FPUSA's core strategy. "This transaction reflects the core strategy behind FPUSA — the first platform in the industry to integrate development, committed manufacturing capacity, institutional capital, and insured performance into a robust pipeline of construction-ready assets with speed and capital certainty," Maczonis said. "The ERCOT market continues to experience strong load growth, reinforcing the need for long-duration storage solutions that can be deployed reliably and at scale. These projects represent an important first step in capturing the opportunity set."
Cole Johnson, Co-Chief Executive Officer of Bimergen Energy Corporation, said the transaction demonstrates the company's development model. "We are pleased to partner with FPUSA on this transaction, which demonstrates our ability to originate, develop, and rotate high-quality energy storage assets while retaining an ongoing interest in their long-term performance," Johnson said. "This model enables us to continue scaling our development platform while supporting the delivery of critical infrastructure in key U.S. markets."
About the Companies
FPUSA describes itself as a long-duration energy storage development and investment platform organized to accelerate the deployment of utility-scale battery infrastructure across the United States. The platform is owned by Cerberus Capital Management.
Bimergen Energy Corporation is a U.S.-based renewable energy developer, asset owner, and independent power provider focused on utility-scale battery energy storage systems and solar projects. The company is listed on the NYSE American exchange under the ticker BESS.
Eos Energy Enterprises, Inc. is a NASDAQ-listed manufacturer of long-duration battery storage systems, including the Z3 system specified for use in the FPUSA portfolio.