Nord/LB has agreed a £45m financing package for a 240MWh battery energy storage system being developed by SAE at its Uskmouth Sustainable Energy Park in Wales.
The Afon Wysg 1 (AW1) project is the first of four BESS assets planned for the former coal power station site in Newport, which SAE is repurposing into one of the UK’s largest clean energy hubs.
Construction is under way and the project is expected to enter operation in 2027.
SAE owns the land, grid, road and rail infrastructure at Uskmouth, which the company said provides advantages in planning, logistics and long-term operations.
“This project is a shining example of what is possible as part of the renewable energy transition,” said Nord/LB senior director Florian Hock.
“We’re thrilled to support SAE in transforming it into one of the UK’s largest BESS sites, which will not only help the UK to realise its net-zero ambitions, but also ensure vital energy security and grid stability going forward.”
SAE chief executive Graham Reid said: “To have one of the leading banks in the energy transition space is the perfect fit for our strategy and our vision.”
“Our focus now is in the safe and successful construction of the AW1 project and its many years of vital operation,” he added.
SAE said the Uskmouth site could eventually support more than 1GW of battery capacity.
Legal advisers on the deal were TLT for Nord/LB and Burges Salmon for SAE.