Macquarie’s Eku secures $A300m in funding for battery storage projects

Macquarie backed battery energy storage developer Eku Energy has secured nearly $A300 million in funding to build battery energy storage systems (BESS) in the UK, including the 99MW/198MWh Ocker Hill BESS in the West Midlands.

Eku Energy, headquartered in London and jointly owned by a Macquarie Asset Management managed fund and British Columbia Investment Management Corporation (BCI), says it has secured £45 million ($A92 million) in debt financing from NatWest Bank and Sumitomo Mitsui Bank to construct the Ocker Hill BESS.

The Ocker Hill BESS is Eku Energy’s fourth energy storage project in the UK and is expected to begin operations later next year, with construction starting next month. It will consist of 54 Tesla Megapacks and is being built by British construction firm H&MV Engineering close to the site of the former Ocker Hill coal-fired power station.

“40 years after the demolition of the original coal-fired power station at Ocker Hill, the nearby Ocker Hill BESS will be providing energy and grid services,” said Elias Saba, chief technology officer at Eku Energy.

“With Ocker Hill BESS and its innovative long-term offtake from Smartest Energy, we further enable the energy transition and uptake of renewable energy.”

Eku Energy also signed UK renewable electricity utility SmartestEnergy UK as the tolling provider under a 10-year agreement, the longest announced agreement to date for a BESS project in the United Kingdom.

The announcement follows on from SmartestEnergy’s first large-scale BESS tolling agreement, signed in March with Equis in New South Wales for a portion of the 250MW/500MWh Tesla Megapack battery to be built in Calala.

In addition to the £45 million, Sumitomo and NatWest have also provided an uncommitted accordion facility of £100 million ($A205 million) to support funding of Eku’s near-term projects in the UK, which includes projects recently added to the company’s pipeline after the April acquisition of Bluestone Energy’s BESS portfolio.

“Eku Energy’s growing portfolio in the United Kingdom reflects our commitment to deliver safe, secure, and reliable energy storage solutions that will provide cost-effective clean energy,” said Daniel Burrows, Eku Energy CEO.

“By securing strong financial backing from NatWest Bank and Sumitomo Mitsui Banking Corporation for the Ocker Hill BESS and partnering with Tesla and SmartestEnergy, we are continuing to expand our role in building a more flexible and resilient energy system for the United Kingdom.”