Pinsent Masons advises Zenobē on landmark battery storage project

Pinsent Masons has acted for international EV fleet and battery storage specialist, Zenobē, on the development, construction and operation of a 200MW / 400MWh transmission connected battery energy storage project to be situated at Blackhillock, near Inverness and the associated portfolio project financing through a £235 million syndicated long-term debt facility.

The project financing facility is the largest to be arranged in Europe for the development of battery energy storage projects which will also fund the development by Zenobē of a further 200MW / 400MWh project at Kilmarnock South, near Glasgow.

The debt structure also includes a £400m accordion facility that will be used to debt finance expansions at each site as well as future projects.

The batteries will provide a wide range of grid services to ease constraints on the electricity network by storing electricity at times of peak renewable generation and ensure network demand and consumer cost expectations are met.

Commenting on the transaction, Apicksha Patel said: “Battery storage has an important role to play in the UK’s energy transition journey. They are critical hubs for enabling new technologies, ensuring the reliable and safe supply of energy, integrating generation sources and helping reduce environmental impacts. As countries continue to prioritise domestic energy supply and low-carbon generation, large scale projects like this one are vital in order to meet the needs of changing energy landscapes and keep up with consumer demand.”

The multidisciplinary Pinsent Masons team was led by Project Financing Partner, Apicksha Patel and Energy Projects Legal Director, David Trethowan supported by team including Lynne Davy, Sibel Beled, Michael Duffy, Natasha Kay, Carmen Morrow, Graham Wallace, Susan Henretty and Jack Taylor.

David Trethowan said: “Grid scale storage projects of this nature are essential to effectively manage the effects of renewable generation intermittency in our move away from fossil fuels to net zero and in providing a range of flexibility services to support network stability. We are immensely proud to have supported Zenobē on this significant project in the rapidly developing UK battery storage market.”