Pacific Green Technologies, an energy storage project developer, secured £120 million (~$146 million) senior debt facility for 249 MW/ 373.5 MWh Sheaf Energy Park battery energy storage project in Kent, England.
“Sheaf Energy Park represents one of the largest project-financed battery energy storage systems in the world. We are pleased to have NatWest’s and UKIB’s participation in the Facility, which is a strong confirmation of the robustness of the project,” said Scott Poulter, Pacific Green’s CEO.
The Facility is provided by a two-bank syndicate, with National Westminster Bank and UK Infrastructure Bank Limited contributing £60 million (~$73 million) each. The Facility will be used to fund the development and construction of Sheaf Energy Park, following which repayment will occur on a 10-year amortization profile upon the start of commercial operations.
“The rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast. Our support for Pacific Green and the Sheaf Energy Park project is a great example of how UKIB’s debt financing can help accelerate large storage projects to bring them online sooner while also providing crucial market confidence in the sector,” said John Flint, CEO of UKIB.
According to Mercom’s 9M and Q3 2023 Energy Storage and Smart Grid Report, there were 26 announced Energy Storage project funding deals in 9M 2023, bringing in a combined $6.8 billion compared to $5.4 billion in 34 deals in 9M 2022.
Gore Street Energy Storage Fund, a UK-based energy storage fund, recently secured financing for a 200 MW energy storage project in Imperial County, California. The First Citizens Bank, through its energy finance business, served as the lead agent.