Goldman Sachs ups storage exposure with £140m Elements Green facility

Institutional investors increasingly view energy storage as an appealing asset class as they see it as an important way of addressing the imbalances between consumption and production that become more acute as renewables penetration increases. Storage is an asset class that Goldman Sachs Alternatives, for example, is increasing its exposure to and in the latest deal it has provided a £140 million debt facility to developer Elements Green for the 360MW /720MWh Staythorpe battery energy storage system (BESS) asset in the UK.

Elements Green was advised by IDCM, acting as financial advisor throughout the transaction. The battery storage project – one of the largest in the UK – has begun early construction, with completion and full commissioning expected in mid-2027.

The site has secured contracted revenues through a 15-year capacity market contract and a beneficial long-term floor agreement with EDF. Mitie are constructing the project which uses Hithium BESS units.

James Gates, CIO of Elements Green, said: “This marks a significant step forward for Elements Green and for battery storage in the UK. Our partnership with Goldman Sachs Alternatives and the support of IDCM demonstrates the confidence in our platform and our ability to deliver high-impact energy projects at scale.”

Christian Schaefer, managing director and co-head of climate credit at Goldman Sachs Alternatives, added: “We are excited to partner with Elements Green and contribute to the realisation of this strategic project with a bespoke project finance unitranche solution.”