Varco Energy has secured Â£58 million of debt financing facilities with NatWest to help fund its pipeline of battery energy storage systems (BESS).
With strategic advice from Carlingford, a division of GFI Securities Limited, Varco Energy approached NatWest to help with the funding of its Native River and Sizing John BESS projects, which are both forecast to be operational in the last quarter of 2024.
NatWest, as sole lender, provided a Â£50 million capex facility, as well as an Â£8 million VAT facility, and an interest rate hedging facility.
Native River is a 57MW/138MWh transmission connected BESS south of Liverpool, while Sizing John is a 57MW/138MWh transmission connected BESS south of St Helens.
Varco Energy, which is funded by Adaptogen Capital, was advised by law firm Watson Farley & Williams on the financing.
James Mills, director of Varco Energy, said: â€œThe provision of flexible and specialist capital is essential to successfully decarbonise our economy and create a more sustainable future. NatWestâ€™s financing package enables us to deliver our first utility scale battery-based energy storage systems.â€
Jacob Lloyd, head of specialist asset finance at NatWest, said: â€œAs the UK continues to transition to a net zero energy system, the BESS market continues to play an important part in balancing grid instability. NatWest continues to build on its support to the BESS sector, aligning to our commitment to provide Â£100 billion of climate and sustainable funding by 2025.â€