2024-07-25
http://w3.windfair.net/wind-energy/pr/45550-varco-energy-uk-financing-natwest-bess-battery-storage-native-river-sizing-john-mwh-facility-renewable-energy-transmission

Varco Energy agrees financing for UK projects with NatWest

Varco Energy has secured £58 million of debt financing facilities with NatWest to help fund its pipeline of Battery Energy Storage Systems (BESS).

Image: PixabayImage: Pixabay

With strategic advice from Carlingford, a division of GFI Securities Limited, Varco Energy approached NatWest to help with the funding of its Native River and Sizing John BESS projects, which are both forecast to be operational in the last quarter of 2024. Following detailed analysis of Varco’s funding requirements and forecast revenue streams, NatWest agreed to provide, as sole lender, a £50 million capex facility, as well as an £8 million VAT facility, and an interest rate hedging facility.

Varco has two BESS assets in the UK; Native River, a 57MW/138MWh transmission connected BESS south of Liverpool, and Sizing John, a 57MW/138MWh transmission connected south of St Helens.  These assets, both being situated within a particularly congested part of the UK’s high voltage grid, will be able to provide localised balancing and stability services to the National Grid system operator, as well as broader load shifting capabilities to enable high penetration of renewable generation across the broader UK system.

Varco, an Adaptogen Capital funded BESS operating company, is on a mission to drive the UK’s energy transition to a net-zero future by building a flexible energy storage portfolio.  By helping to integrate renewable energy generation and balance the grid, Varco makes sustainable energy accessible and affordable for all consumers.

Varco Energy was advised by Watson Farley & Williams LLP, a leading international law firm specialising in the energy and transport sectors, and Carlingford, a specialist debt advisor and arranger in the broader natural resources sector including energy markets, mining, and energy infrastructure.

James Mills, Director, Varco Energy said: “The provision of flexible and specialist capital is essential to successfully decarbonise our economy and create a more sustainable future. NatWest’s financing package enables us to deliver our first utility scale battery-based energy storage systems. We are excited to have secured this initial facility with one of the leaders in the specialist BESS financing market, are grateful to Natwest for their funding support, and look forward to working together to help build out our remaining pipeline.”

Jacob Lloyd, Head of Specialist Asset Finance at NatWest, said: “We are delighted to support Varco Energy with their new BESS projects, providing a further 114MWs of energy to keep the UK moving towards a renewable future. As the UK continues to transition to a net zero energy system, the BESS market continues to play an important part in balancing grid instability. NatWest continues to build on its support to the BESS sector, aligning to our commitment to provide £100bn of climate and sustainable funding by 2025.”

Source:
Varco Energy
Author:
Press Office
Link:
www.varco.energy/...
Keywords:
Varco Energy, UK, financing, NatWest, BESS, battery, storage, Native River, Sizing John, MWh, facility, renewable energy, transmission




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