€50M  ·  ~80MW (240MWh) BESS  ·  Immingham, England, UK  ·  Santander / EDF

Econergy, a leading European independent power producer has secured approximately £42.7million in project financing from Santander UK PLC for its ~80MW (240MWh) battery energy storage system (BESS) project in Immingham, England. The financing was signed by the project company, Ecostor 1 Immingham Ltd, and comprises a main facility of approximately £38.4 million together with a VAT revolving facility and a debt-service reserve facility. The main facility will primarily fund construction costs and the repayment of shareholder loans provided during the development phase. 

In parallel, the project company entered into two 10-year revenue floor agreements with EDF Energy Customers Limited, a leading provider of optimisation services for storage assets, each covering 40MW of the project. Under the agreements, EDF will provide commercial optimisation services for the Immingham project, with a guaranteed annual revenue floor that reduces cash-flow volatility and strengthens the project’s financial profile, alongside a revenue-sharing mechanism for additional income above the guaranteed level. Over the term of the agreements, contracted revenues from the Floor and the associated Capacity Market component are expected to total approximately £45–50 million (of which the Capacity Market represents ~11%), equivalent to approximately 50% of the project’s expected total revenues over that period.

The dual-structure arrangement, combining project debt from Santander with long-term revenue certainty from EDF, mirrors the structure Econergy delivered on its Dalmarnock BESS financing earlier this year and reflects the growing maturity of the UK’s energy storage financing market.

Joshua Murphy, Director of Energy Storage: “It is great to be closing another UK storage project, and a three hour battery of this size is a real milestone. Once commissioned it will be among the largest batteries in the country operating above two hours. Closing again with Santander and EDF, two of the leading players in the market, says a lot about the strength of our team and the trust these large institutions place in Econergy’s ability to develop, build, own, and operate energy storage facilities.”

Claire Heaton, Associate Director, Santander UK, said: “We are pleased to support Econergy with its latest BESS project in Immingham, building on our relationship following the Dalmarnock financing earlier this year. Battery storage has an important role to play in supporting a more flexible and resilient UK energy system, and this transaction demonstrates how well-structured project finance can help bring high-quality storage assets into operation. We look forward to continuing to support Econergy as it develops its growing portfolio.”

Stuart Fenner, Commercial Director at EDF’s Wholesale Market Services, commented: “EDF is proud to support Econergy on the Immingham 80MW/240MWh project, the second deal we have closed together and another key step in our mission to help electrify Britain. By providing our market leading battery optimisation services alongside a reliable revenue foundation, we are able to help asset owners like Econergy unlock additional capital whilst helping support the energy transition.”