NatWest has completed a financing deal with storage and flexible generation company Statera Energy to support eight new projects in the UK.
These will consist of new flexible natural gas-power generation and battery energy storage technologies, and will cumulatively add 400MW of energy capacity to the market. This will support the transition to net zero by 2050, the companies said, by supporting the growth of renewable energy.
The sites will provide balancing services, helping to manage intermittent renewable generation during peak times and allowing the UK to move away from older, more carbon intensive forms of generation.
Banking giant NatWest acted as Lead Arranger, Lender, Facility Agent, Security Trustee and Hedge Counterparty for the projects.
Tom Vernon, managing director of Statera Energy, said the company was pleased to have completed the financing, “which builds on our existing long-term relationship with the bank".
“The requirement for a smart and flexible UK electricity system will only grow as we move towards a more renewable and net zero future. It is a testament to the teams at NatWest, and our offtake partner Statkraft, that we have been able to structure a financing that allows us to deliver on the exciting growth we have in front of us.”
Statera’s transaction with NatWest is underpinned by a 15-year power purchase agreement with market access services company Statkraft.
The companies entered into a strategic long-term partnership in 2019, setting their sights on over 1GW of energy storage and utility scale, flexible gas-powered generation. The first stage of this was the integration of its 49.99MW Creyke Beck battery storage facility into Statkraft’s virtual power plant, with the battery now providing frequency response and playing into the Capacity Market.
NatWest has increasingly been looking to invest in green energy technologies, having partnered with Octopus Energy for EV financing earlier this year and provided £20 million worth of funding for Zenobē Energy last year.
Andrew Blincoe, managing director of large corporates and institutions at NatWest, added that the deal will further grow the bank’s “commitment to growth and investment in green energy solutions, and to supporting business customers at all levels with the transition to a low carbon environment".