NatWest & UKIB fund battery storage park for grid stability
As the world further electrifies, battery storage is increasingly necessary.
Cleantech solutions company Pacific Green is helping to address the world’s demand for cleaner and more sustainable energy by organically acquiring the best technologies, supply chains and expertise whilst developing and maximising return from renewable energy, energy storage systems and emission control technologies.
Pacific Green has dedicated itself to creating a cleaner environment since its inception, growing from an environmental technologies supplier to a broad-spectrum developer and facilitator of modern renewable energy technologies, including energy storage systems.
The battery energy storage park developer has secured a combined £123.5m facility to support the construction of a major battery energy storage park in the UK to support the national increase in electrification.
“The rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast,” comments John Flint, CEO of UK Infrastructure Bank (UKIB), which is supporting the financing of the project. The former Group CEO of HSBC, a company he was with for nearly three decades, Flint is supporting the UKIF in building its capability and capacity to tackle its two pressing missions — supporting the transition to net zero and helping to boost regional and local economic growth.
“This project is a great example of how debt financing can help accelerate large storage projects to bring them online sooner, while also providing crucial market confidence in the sector.”
Financing battery storage to support the energy transition
Natwest successfully coordinated a syndicate financing of a £120m capex loan and a £3.5m VAT facility for Sheaf Energy Limited, a wholly owned subsidiary of Pacific Green Technologies, Inc.
“We are excited to have reached another milestone in the development of our BESS pipeline in the UK and around the world,” says Scott Poulter, Chairman, CEO and Founder of Pacific Green Technologies, Inc. Poulter is a former professional windsurfer from the UK, who became a sports marketing entrepreneur, going on to found Pacific Green in 2010.
“The senior debt package enables us to deliver much needed battery-based energy storage, which is key for the successful adoption of renewable power, and ultimately achieving net zero. We thank the NatWest team for their excellent guidance and support.”
The syndicate sees NatWest and UKIB hold an equal 50% share in the capex loan each, and NatWest solely funds the VAT facility. The financing will support the construction of Sheaf Energy Park, a 1.5hr, 249MW/373.5MWh transmission-connection battery energy storage system (BESS) located in Kent which is expected to become operational in July 2025.
“It’s great to support the new Sheaf Energy Park project and continue to help the decarbonisation agenda of the UK, working alongside UKIB to give Pacific Green a market leading debt structure that helps them bring in a further 249MW of flexible generation assets to the grid,” says Jacob Lloyd, Head of Specialist Asset Finance at NatWest. Lloyd’s career spans some finance giants including The Royal Bank of Scotland, WorldFirst, as well as Kohler Co.
“BESS continues to play a big role in the UK’s grid stability, and we look forward to working further with Pacific Green on the future of energy transition. NatWest were able to take a lead role in all aspects of the financing and it further demonstrates our commitment to provide £100bn of climate and sustainable funding by 2025.”
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