Akaysha lands “first of its kind” debt finance for two new Australian battery projects

Akaysha Energy, which is currently building the country’s most powerful battery at the site of a shuttered coal fired power station in NSW, has announced what it says is a “first of its kind” debt package that will help finance two new big battery projects.

The $250 million debt raising, featuring Australia’s CBA and a handful of international banks, is said to be unique for battery storage projects and will be used to start construction on its Ulinda Park and Brendale battery projects in Queensland.

The 155 MW, two hour (298 MWh) Ulinda Park battery has already begun construction next to the Western Downs substation at Hopeland near Chinchilla in Queensland.

It is using Powin battery technology, the same as for the 850 MW, 1680 MWh Waratah Super Battery that Akaysha is building at Munmorah in NSW, and which is the largest single unit to be added to Australia’s main grid and will act as a giant “shock absorber” that allows transmission lines to be used at full capacity.

The 205 MW, two hour (410 MWh) Brendale battery will feature Tesla Megapack technology and will begin construction soon. It will be located at the South Pine substation in the Brisbane region on a site owned by Unity Water.

The two new battery projects will provide energy arbitrage and frequency control ancillary services (FCAS), to support the rapid expansion of solar and wind projects on the main grid, and both are expected to begin commercial operations in 2025, when the Waratah super battery is also due to be finished.

Akaysha is yet to deliver a finished project, but is already emerging as one of the biggest players in the Australian battery storage market, with a pipeline of more than 4,000 MWh of storage capacity, and is owned by global funds management giant BlackRock after a buyout in late 2022.

“This portfolio will significantly bolster the delivery of a stable supply of energy to the broader Australian community,” said Charlie Reid, the APAC co-head of Climate Infrastructure at BlackRock.

“BlackRock has identified the transition to a low-carbon economy as one of the key mega forces driving investments around the world.

“It will likely require an investment of around US$200 trillion in capital, presenting a substantial investment challenge. This capital raise represents a significant step towards accelerating that transition, positioning Australia to establish itself as a global renewable superpower.”

The bank finance, also supported by DBS, ING, Mizuho, MUFG, Rabobank and SMBC, has a tenor of 3 years and will be used to fund the construction costs for Ulinda Park and Brendale battery projects. The portfolio financing also provides more than A$100m of Letters of Credit to support the projects’ security obligations.

“This first-of-its-kind BESS portfolio financing is pivotal to supporting the energy transition and improving grid stability. ” said Andrew Wegman, the head of Finance and Investments at Akaysha.

The company says it was advised by Azure Capital and Ashurst, with HSF acting as lenders’ counsel. Due diligence advisors were DNV, Aurora, Marsh, KPMG and Mazars. 

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