BW ESS has obtained debt financing from international lenders to support its 400MW/1.42GW-hour (GWh) Hams Hall battery energy storage system (BESS) in the West Midlands, UK.
The facility, situated next to National Grid’s Hams Hall substation, will initially begin with a storage capacity of 350MW/1.24GWh.
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According to BW ESS, this will be Europe’s largest operational BESS by megawatt-hours at the point of commercial operation.
The financing is being provided in equal proportions by OCBC, Rabobank and Société Générale, with Rabobank also acting as facility agent.
BW ESS stated that the agreement resulted from a competitive financing process, in which more than 30 lenders were involved.
The debt transaction is expected to close at the site’s commercial operations date.
BW ESS indicated that the Hams Hall project is designed to support the electricity needs of approximately 1.3 million homes for up to 3.5 hours when fully operational.
In addition, long-term revenue for the project’s first phase will be supported via a ten-year floor and optimisation agreement with EDF, signed in April this year.
BW ESS chief financial officer Nick Stamp said: “Securing financing for Hams Hall is another major milestone for BW ESS and for the wider UK energy storage market. The exceptionally strong response from lenders demonstrates growing confidence in both the investment case for battery storage and BW ESS’ ability to develop and operate strategically important infrastructure assets.
“We are delighted to partner with OCBC, Rabobank and Société Générale on this landmark project. Hams Hall will provide critical infrastructure for balancing the UK’s increasingly renewable-powered electricity system, while enhancing energy security and reliability for consumers.”
The Hams Hall facility forms part of the Ardenham portfolio, which has a total capacity of 2.6GWh and is co-owned by BW ESS and AIP Management.
BW ESS’ UK operations also include the 331MW-hour (MWh) Bramley BESS in Hampshire, a further 857MWh under construction at Berkswell and a development pipeline spanning multiple gigawatt-hours.
CMS served as legal adviser to the company, while Watson Farley & Williams advised the lenders. Technical and market advisers for the transaction were Everoze and Modo Energy, respectively.
