Developer Corre Energy has formed a joint venture with Dutch battery player SemperPower to deliver one of Europe’s largest battery storage facilities at its 320MW Zuidwending site in the Netherlands.
SemperPower, owned by Return Energy, will partner with Corre to deliver the two-hour battery project, totalling 640MWh.
The 50/50 JV will initially invest €7m, with Corre Energy’s share represented by capital already invested in the project to date.
The partners said the project will act as a critical grid balancing solution for the Netherlands and meet increasing supplies of intermittent renewable energy while delivering a significant, positive impact on society and the environment.
The JV estimates the project will remove over 70,000 tonnes of carbon dioxide per year and also complements Corre Energy’s Compressed Air Energy Storage plans and delivers a near-term, additional revenue stream to the company.
SemperPower will provide battery infrastructure sourcing, development and operational expertise. Further responsibilities include finalising offtaker agreements and project financing with select partners, including access to significant debt facilities.
Offtake demand and pricing analysis has been undertaken by SemperPower and validates economic projections agreed between the parties. SemperPower has significant experience in battery development, with three existing projects operating in the Netherlands and a further pipeline backed by Return Energy.
The JV is targeting a fixed 10-12 year offtake agreement which will ensure no market revenue risk. FID (financial close) is targeted for late-2025 which moves the project to its next phase and will deliver development fees in line with standard industry terms.
Capital expenditure during construction and installation will be approximately €300m before delivering a recurring annual income underpinned by the project’s offtake agreement from when commercial operations are expected to begin in 2026.
The battery facility will share the same grid infrastructure as Corre Energy’s planned CAES facility. Once delivered, the combined battery and CAES projects will create a multi-duration energy storage hub for the area, from milliseconds to multi-day, a model being explored across other Corre Energy projects.
Local and national consultation will now take place for the battery project, with further updates on timings and details of both the battery and CAES projects to be provided in due course.
“This major new partnership with Semper Power and Return Energy speeds up and broadens our income profile for Zuidwending while delivering critical storage to meet future energy consumption needs,” said Corre Energy chief executive Keith McGrane.
He added: “This crystallisation event secures immediate investment to fund the venture followed by further payment at FID and represents a model to realise nearer term cashflows to supplement our CAES development.
“We look forward to working with SemperPower who bring expertise in battery and infrastructure as well as project finance and offtake delivery.
“Looking ahead, we believe batteries could play a major role in our current and future projects. It’s a model we can replicate and scale because the economics stack up, it can accelerate projects and the technology is highly complementary.
“More widely this all contributes to a faster, greener, fairer and more stable energy system for society.” Zuidwending is located in the Netherlands, 20km from the nearest coast, close to offshore wind and solar farms, and at the centre of the country’s transitioning energy system.
“We are pleased to announce our cooperation with Corre Energy, leveraging the complementary capabilities of both parties to realise this significant project,” said SemperPower chief executive Dennis Schiricke.
“As creators of capacity, our mission is to make electrical storage capacity available to the market.
“Through this joint venture, we aim to support regional stakeholders by accelerating the energy transition, a goal achievable only through collective efforts.
“This project stands to bring numerous benefits to the local region, including enhanced energy security, job creation, and a boost to the local economy. By working together, we can inspire collective action and tackle sustainability challenges head-on.”