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Zenobē secures £235m of debt to fund an energy storage project in Scotland

Zenobē secures £235m of debt to fund an energy storage project in Scotland

Arrangement Debt Scotland is the largest project financing facility for a battery storage project to be arranged in Europe.

Zenobē, a leading global manufacturer of electric vehicle fleet and battery storage, has secured a £235m long-term loan facility, structured by NatWest as sole debt advisor.

The funding comes from Canadian Imperial Bank of Commerce, Rabobank, Santander UK and Siemens Financial Services through Siemens Bank and NatWest to fund Zenobē’s next transmission-related grid-scale battery storage assets totaling 400 MWh / 800 MWh.

The largest in Europe

The deal is the largest project financing facility for battery storage projects to be arranged in Europe and is further confirmation by financial institutions of their confidence in Zenobē, its battery storage assets and infrastructure operations.

The debt structure also includes a £400m facility which will be used to fund expansions at each site as well as future projects that will take Zenobē’s total battery portfolio in Scotland to 1,050 MWh / 2,100 MWh by 2026.

The assets will be located at two of Zenobē’s conversion-related sites in Scotland; Blackhillock, a 200 MW/400 MWh site near Inverness, which will become operational in the summer of 2024 and Kilmarnock South, another 200 MW/400 MWh site near Glasgow, which will start operations soon.

The first stage

Both sites have the potential to expand by 100 MWh. It is estimated that the 400 MWh/800 MWh initial phase of both projects will prevent 4,100,000 tons of carbon dioxide from entering the atmosphere over 15 years, equivalent to approximately 150,000 fewer cars on the road over 15 years. years.

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The Scottish Government has announced its ambition to provide 20 GW of additional low-cost renewable electricity generation capacity by 2030, including 12 GW from onshore wind. Zenobē’s battery storage assets will play an important role in increasing grid efficiency and enabling more renewable generation. transferred to.

Balancing supply and demand

Batteries will provide a wide range of services including balancing supply and demand. This will ease the constraints on the grid by storing electricity for times of high renewable generation.

The batteries will therefore ensure that network demand and consumer cost expectations are met.