Pacific Green has reached financial close on a Â£120 million (US$146 million) senior debt facility for the 249 MW / 373.5 MWh Sheaf Energy Park battery energy storage system in Kent, England.
The facility is provided by a two-bank syndicate, with Natwest and UK Infrastructure Bank Limited (UKIB) contributing Â£60 million (US$73 million) each. The facility will be used to fund the development and construction of Sheaf Energy Park, following which repayment will occur on a 10-year amortisation profile upon the start of commercial operations.
Scott Poulter, Pacific Greenâ€™s CEO, said: â€œSheaf Energy Park represents one of the largest project-financed battery energy storage systems in the world. We are pleased to have NatWestâ€™s and UKIBâ€™s participation in the facility, which is a strong confirmation of the robustness of the project.â€
Jacob Lloyd, head of specialist asset finance at NatWest, added: â€œPacific Green is one of the fastest growing independent renewable energy developers, and we are excited to support them with Sheaf Energy Park and future projects to come as they continue their growth in the renewable energy sector.â€
John Flint, CEO of UKIB, added: â€œThe rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast. Our support for Pacific Green and the Sheaf Energy Park project is a great example of how UKIBâ€™s debt financing can help accelerate large storage projects to bring them online sooner, while also providing crucial market confidence in the sector.â€