Corre Energy has established a joint venture (JV) with SemperPower to develop a two-hour 320MW battery storage project in the Netherlands with an investment of around €300m.
SemperPower is owned by renewable energy investment platform Return Energy. The Dutch firm is engaged in developing, financing, and operating battery energy storage systems (BESS).
Corre Energy, which is also based in the Netherlands, is involved in the development and operation of long duration energy storage (LDES) projects and products.
SemperPower and Corre Energy will build their battery storage facility at the latter’s Zuidwending site. The project will have a total capacity of 640MWhrs.
It is expected to serve as a key grid balancing solution for the Netherlands. The battery storage project will also address the growing supplies of intermittent renewable energy apart from delivering a positive impact on both the society and the environment.
Through the Dutch battery storage facility, both companies aim to eliminate emission of more than 70,000 tonnes of carbon dioxide per year.
Besides, the project complements Corre Energy’s compressed air energy storage (CAES) plans and provides a near-term additional revenue stream to the company.
For the proposed battery storage facility, SemperPower will deliver battery infrastructure sourcing, development, and operational expertise.
Additionally, the company will handle the finalisation of offtaker agreements and project financing with select partners. This includes securing access to substantial debt facilities.
SemperPower has carried out offtake demand and pricing analysis and has also validated the economic projections agreed between the parties.
The JV plans to sign 10-12 years offtake agreement for the Dutch battery facility to guarantee zero market revenue risk.
Initially, the 50-50 JV will invest €7m in the Dutch battery storage project. Corre Energy’s share is represented by capital already invested in the project to date.
Both parties aim to achieve a financial investment decision (FID) by late-2025. This will advance the project to its next phase and provide development fees in accordance with standard industry terms.
Commercial operations at the proposed Dutch energy storage facility are expected to commence in 2026.
SemperPower CEO Dennis Schiricke said: “Through this joint venture, we aim to support regional stakeholders by accelerating the energy transition, a goal achievable only through collective efforts.
“This project stands to bring numerous benefits to the local region, including enhanced energy security, job creation, and a boost to the local economy. By working together, we can inspire collective action and tackle sustainability challenges head-on.”
Corre Energy said that the new battery facility will share the same grid infrastructure as its planned CAES facility.
Once delivered, the combined battery and CAES projects will result in a multi-duration energy storage hub for the area.
Corre Energy CEO Keith McGrane said: “This major new partnership with Semper Power and Return Energy speeds up and broadens our income profile for Zuidwending while delivering critical storage to meet future energy consumption needs.
“This crystallisation event secures immediate investment to fund the venture followed by further payment at FID and represents a model to realise nearer term cashflows to supplement our CAES development.”
