Climate change is driving the need for an urgent reduction in carbon emissions. As a result, the UK Government has committed to a net zero economy by 2050 and has set ambitious targets for renewable energy generation to deliver these carbon emission savings. A range of flexible technologies are required to help ensure a consistent and stable energy supply, and this is where UK-headquartered Statera Energy, an energy storage and flexible generation developer and operator comes into the picture.
In a recent development, Statera Energy has raised £300 million of debt financing through a syndicate led by Lloyds Bank that backed LendInvest and Fnality International. In the first phase, £144 million of the financing will be used for Statera’s 300MW (600MWh) Thurrock Battery Energy Storage System (BESS), which will make a significant contribution to the UK’s flexible storage capacity. The rest of the financing will fund the development of a 270MW flexible generation plant which secured a capacity market contract early this year.
This debt financing follows the funding from Swedish Private Equity firm EQT Infrastructure. It marks the next phase of the company’s growth as it progresses its project pipeline of over 16GW, of which 7.5GW is expected to be operational by 2030.
Lloyds Bank acted as the Sole Structuring Bank for the debt financing facilities and Mandated Lead Arranger and Hedge Provider in a multi-bank transaction, which included NatWest, Santander, and Siemens Financial Services through Siemens Bank.
Drives UK’s transition to net-zero
Founded in 2015 by Tom Vernon in London, Statera Energy develops, owns, and operates the assets that provide critical grid balancing support in a renewables-led power system.
The BESS project, located near Greater London, is the first stage of Statera’s wider Thurrock development plans to enter construction. Already, the company has secured consent for a total of 900MW of energy storage and flexible generation assets at the site. Statera touts that the 300MW BESS project will be one of the largest in the UK and Europe once commissioned.
Back in 2019, Statkraft, one of Europe’s largest generators of renewable energy, announced a 15-year partnership with Statera Energy, which will see the latter bring 1GW of flexible generation assets to market.
Statera’s CEO and Founder, Tom Vernon said: “Lloyds’ commitment to Statera, through one of the largest battery storage debt financing deals in the UK to date, is testament to the quality of our projects. Our Thurrock BESS project is strategically located near to Greater London providing further energy system resilience to this key demand centre. We are delighted to have worked with Lloyds, the syndicate of lenders, and Statkraft in achieving this significant milestone.”
Managing Director, Head of Infrastructure and Project Finance at Lloyds Bank, James Taylor, said: “By storing excess energy, Statera’s technology ensures the UK’s increasingly renewables-led power system can deliver all day and all year round, promoting security and stability, reducing carbon emissions and, ultimately, helping to lower people’s energy bills. The financing we’ve arranged will provide a platform for Statera to continue to develop its portfolio of assets across the UK. We’re excited to see what the team achieves next and to support more businesses and infrastructure projects leading the UK’s renewable energy transition.”