UK-based Statera Energy has secured up to £300m of debt financing for its 900MW Thurrock energy storage and flexible generation project in the UK.
To be located on land to the north of the Tilbury substation, the Thurrock project includes a 600MW gas-fired electricity generating station and a 300MW battery energy storage system (BESS).
The Thurrock flexible generation plant will be delivered in two phases. The first phase of development, which secured a capacity market contract earlier this year, has a capacity of 270MW.
According to Statera Energy, the first £144m phase of the debt funding will be used to implement the BESS project, while the remaining £156m will finance the development of the first phase of the Thurrock flexible generation plant.
Once commissioned, the Thurrock BESS project is said to be one of the largest in the UK and Europe.
Statera Energy CEO and founder Tom Vernon said: “Our Thurrock BESS project is strategically located near to Greater London providing further energy system resilience to this key demand centre.
“System flexibility in the form of energy storage technologies is a crucial part of achieving energy security, decarbonising our power system, and enabling the UK’s transition towards net zero.”
The energy storage and flexible generation developer and operator arranged the funding through a syndicate led by Lloyds Bank.
Lloyds Bank served as the sole structuring bank for the debt financing facilities and mandated lead arranger and hedge provider in a multi-bank transaction that comprised Santander, NatWest, and Siemens Financial Services through Siemens Bank.
Renewable energy company Statkraft offered a long-term revenue floor that supported the financing of the deal.
Lloyds Bank managing director and infrastructure and project finance head James Taylor said: “By storing excess energy, Statera’s technology ensures the UK’s increasingly renewables-led power system can deliver all day and all year round, promoting security and stability, reducing carbon emissions and, ultimately, helping to lower people’s energy bills.
“The financing we’ve arranged will provide a platform for Statera to continue to develop its portfolio of assets across the UK.”
