German company Tion Renewables has acquired its first battery storage project.
Located in the small town of Bacup in the northwest of England, the project was developed by Boom Power.
The battery energy storage system consists of five battery containers holding lithium-ion battery cells (8.0MW/9.3MWh) and will be directly connected to the electricity grid.
With battery containers already delivered, the project is currently under construction and is expected to become operational in the first half of 2023.
The enterprise value of the battery storage project was determined to be £5m. The expected unlevered return on equity lies slightly above 8% and can be further optimised by the efficient use of debt.
Christoph Strasser, Co-CEO/CIO of Tion Renewables AG, said: “For our entry into the battery storage market, we decided to acquire a rather small project. The project represents an ideal opportunity to enter a new market and to grow further without raising additional capital.
“As a company, we want to gradually develop to make the best use of the potential of our large battery storage pipeline. This approach has enabled our successful growth in the renewable energy sector so far.”
Mark Hogan, Founder and CEO of Boom, added: “To date, the Boom team has already delivered 50MWh of battery storage projects. We are delighted to have worked with Tion on their first battery storage project and look forward to realising many more projects together.
“Our pipeline of battery storage projects, to which Tion has priority access, adds up to +1.5 GWh and provides many opportunities to continue working together in the future.”