Capcora advised Terra One on the sale of a 310 MW BESS portfolio in Germany to CCI

Frankfurt am Main  - Terra One Climate Solutions GmbH (Terra One), a pioneer in grid-scale battery energy storage systems (BESS) in Germany, has announced an agreement to sell a 310 MW portfolio of stand-alone battery storage project rights in Germany to Castleton Commodities International LLC (CCI), a global energy commodities merchant and infrastructure asset investor. Capcora supported the seller as exclusive M&A adviser in this transaction. This deal stands out as a landmark in Germany’s young BESS market and is among the first cross-border transactions in this emerging sector.

The portfolio consists of 310 MW of shovel-ready and advanced projects, strategically positioned to support Germany’s renewable targets by enhancing network stability and providing the flexibility required for a sustainable power grid. CCI will build, own and operate these assets via its subsidiary S4 Energy BV.

Large-scale battery storage systems enable the continuous supply of renewable energies and are therefore a critical component of the energy transition. According to Fraunhofer ISE, Germany alone requires 178 GWh of storage capacity by 2040 to achieve the federal government's climate targets. Less than 2 GWh had been installed by the end of 2022.

Terra One directly supports these objectives, with a pipeline of over 400 projects totalling more than 80 GWh in capacity, affirming its aspiration to become a top 3 provider of flexible energy in Europe. It is constructing several BESS projects across Germany and is actively participating in the power market via its proprietary algorithmic trading platform.

Thomas Antonioli, co-founder and chief financial officer at Terra One, said: “Our partnership with CCI, a well-established player in the energy commodities market, brings significant value to our stakeholders. This collaboration leverages CCI's extensive market experience and our innovative approach. We will use the proceeds for constructing several hundred megawatt-hours of our own BESS projects, which we will operate via our proprietary optimization platform.”

Mohit Singh, principal in CCI’s European Principal Investments team, said: “This transaction demonstrates our conviction in the sector and belief in the vital role that battery energy storage must play in supporting Germany’s decarbonization goals.”

Henning Prigge, director at Capcora, said: “This partnership demonstrates the growing significance of cross-border collaboration in advancing Europe's BESS market.”

Terra One was advised by Baker McKenzie (legal) and EY (tax), with Capcora acting as sell side M&A adviser.

About Castleton Commodities International LLC

CCI is a global energy commodity merchant with integrated businesses focused on marketing, merchandising and trading commodities, and the ownership, operation and development of commodities-related infrastructure assets. Please visit our website for more information: www.cci.com

About S4 Energy

S4 Energy develops, builds, owns and operates grid-scale battery energy storage systems. We help energy producers, grid operators and end users to stabilize supply and demand and make the most of the existing infrastructure. Our mission is to make the energy grid more resilient and flexible. Please visit our website for more information: www.s4-energy.com

About Terra One

Terra One is a leading player in large-scale battery storage in Germany, supporting renewable energy reliability since 2022. With a pipeline of over 400 projects and 80 GWh of capacity, Terra One aims to meet ambitious storage needs for the energy transition. The company’s innovative approach spans the entire value chain—development to operation—and leverages an AI-based trading platform to achieve above-market returns. Founded in Berlin by Tony Schumacher and Thomas Antonioli, Terra One’s team brings expertise from top companies, including Baywa.re, Nextera Energy, Engie, Statkraft and Next Kraftwerke.

www.terra.one

About Capcora

Capcora is an independent financial advisory boutique specializing in M&A and project finance services to accelerate the energy transition in Europe. Founded in 2015, the Frankfurt-based company helps its clients succeed in the renewable energy and infrastructure sectors by advising them on sell-side and buy-side transactions, and by raising mezzanine, unitranche or senior debt.

www.capcora.com

Download press photo: https://www.iwrpressedienst.de/bild/capcora/88032_24-11-12_Terra-One-310MW-BESS-portfolio-Germany.jpg Caption: Capcora advised Terra One on the sale of a 310 MW BESS portfolio in Germany to CCI © Capcora

Frankfurt am Main, 12 November 2024