Eku Energy has secured a £145 million financing package to fund the building of new grid-scale battery storage projects in the UK.
The funding from NatWest Bank and Japanese multinational bank SMBC includes more than £45m in debt financing for a new 99MW battery energy storage system (BESS) at Ocker Hill in the West Midlands.
The 99MW / 198MWh Ocker Hill BESS is close to the site of the coal-fired power station of the same name which stood for more than 80 years until its closure in 1977 and final demolition in 1985.
Construction of the new project at Ocker Hill (artist’s impression pictured) is set to begin next month and it is due to be commissioned in late 2026.
In addition to the asset specific financing, SMBC and NatWest have provided an uncommitted accordion facility of £100m to support funding of Eku Energy’s near-term UK projects.
These include some of the recently announced projects under development as a result of the company’s recent Bluestone Energy BESS portfolio acquisition.
The acquired portfolio includes seven planned BESS projects with a combined capacity of 1GW / 2GWh.
Ocker Hill is Eku Energy’s fourth energy storage project in the United Kingdom to either be in operation or under construction.
The BESS will use 54 Tesla Megapacks, and the project will be built by H&MV Engineering as the Balance of Plant contractor.
SmartestEnergy, a 100% owned subsidiary of Marubeni Corporation, will serve as the tolling provider under a 10-year agreement.
Chief technology officer at Eku Energy Elias Saba said: “Forty years after the demolition of the original coal-fired power station at Ocker Hill, the nearby Ocker Hill BESS will be providing energy and grid services.
“With Ocker Hill BESS and its innovative long-term offtake from SmartestEnergy, we further enable the energy transition and uptake of renewable energy.”
Eku Energy’s chief executive Daniel Burrows added: “Eku Energy’s growing portfolio in the United Kingdom reflects our commitment to deliver safe, secure, and reliable energy storage solutions that will provide cost-effective clean energy.
“By securing strong financial backing from NatWest Bank and Sumitomo Mitsui Banking Corporation for the Ocker Hill BESS and partnering with Tesla and SmartestEnergy, we are continuing to expand our role in building a more flexible and resilient energy system for the United Kingdom.”