BW ESS has secured debt financing for its operational 100MW/331MWh battery energy storage system (BESS) in Bramley, Hampshire, in the UK.
Under the agreement Australian bank Westpac and Singapore-headquartered UOB will contribute 50% each to the debt facility.
The transaction follows a highly competitive financing process reflecting the technical quality of the Bramley BESS project, the strength of its long-term revenue model, and the project’s strategic significance to the UK grid.
Bramley is one of the UK’s longest duration and most versatile energy storage assets, benefitting from a market-first seven-year tolling agreement with Shell Energy Europe.
Since its inauguration in February this year, Bramley has “been consistently one of the largest single sources of energy storage capacity available to the UK grid”, exceeding expectations for both technical and revenue performance.
“Bramley is a flagship asset in our growing UK portfolio. We were nonetheless encouraged by the exceptionally high level of interest the project generated from the lending community,” said Marc Weisser, CFO of BW ESS.
“We couldn’t be happier with our final choice of lending partners; both UOB and Westpac have demonstrated a firm commitment to supporting the global rollout of strategically significant BESS projects and share our interest in unlocking the value of energy storage.”
Sarah Heavey, Westpac’s Head of Energy, Infrastructure & Resources, added: “This is an important milestone in longer duration energy storage, providing additional resilience to the UK’s grid as the country makes further progress on its strategic energy transition journey.
“As Westpac continues to build its international presence supporting our global customers, we’re delighted to support BW ESS in its first UK project financing and look forward to replicating this success more widely across Europe and Australia.”
Edmund Leong, Head of Group Corporate Banking, UOB, said: “This landmark green project financing, for one of the UK’s largest BESS projects, also showcases UOB’s sector expertise, as we structure and support the growth of BESS project financing worldwide.
“This solidifies our position with clients who push the boundaries of innovation and sustainability, creating a cleaner, more resilient future for generations to come.”
This deal is BW ESS’ second external financing closed in recent weeks, following a loan agreement with Nordea Bank to finance its 211MWh Swedish energy storage portfolio.