The UK Infrastructure Bank has announced a £60m loan to support Pacific Green in its development of a new 249MW/373.5MWh electricity storage park in Kent.
The bank’s financing is part of a £120m debt package alongside NatWest, which will enable the construction of the short duration battery storage facility.
Once complete the Sheaf Energy Park, located on the former home of a thermal power station, will be one of the largest standalone battery storage projects in the country.
UK Infrastructure Bank chief executive John Flint said: “The rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast. That means scaling this technology which in turn presents challenges for the market. This is exactly why the Bank is here.
“We want to play a meaningful role in the transition of the energy sector and this deal is a great example of how the Bank’s debt financing can help accelerate these large storage projects to bring them online sooner, while also providing crucial market confidence in the sector.”
Pacific Green Technologies chief executive Scott Poulter commented: “We are thrilled to have worked alongside UKIB and NatWest to finance this ground-breaking battery energy storage project that will contribute to the UK’s Net Zero Strategy for decades to come.”