SWGT and Santander UK announce £28m funding for Mannington Battery Storage Project

Energy & Low Carbon Industry | Funding | South East

Energy

SWGT have secured a non recourse project finance debt solution with Santander UK Plc totalling £28m in support of the construction and operation of Mannington Battery Storage Project.

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Scheduled to reach commercial operations in October 2021, this grid scale, front-of-meter battery asset is on track to become the first operational two-hour duration BESS asset in the UK, being among the top-three largest energy storage sites in the UK.

Santander’s project finance team provided finance by structuring traditional project finance debt alongside a debt tranche supported by their Environmental & Social Growth Funding (“ESGF”) solution.

Olivia He, Chief Investment Officer at SWGT said: “As energy storage trading and optimisation evolves, longer duration batteries represent the cutting edge trend in the UK power market.  Mannington Phase Two financial close allows us to seize this market opportunity at the very beginning of 2021. We were hugely impressed by Mark Cumbo and Santander’s banking teams’ professionalism, expertise and efficiency, making it possible for a highly innovative and complex transaction to be completed expeditiously. With the successful launch of the Mannington flagship project, SWGT is ready for scalable and exponential growth that contributes to the green energy transition both locally and globally.”

Mark Cumbo, Director, Specialised & Project Finance, Santander UK: “Santander is delighted to have closed the second phase of this exciting project with SWGT. This agreement further demonstrates our ability to work with ambitious teams like SWGT to deliver complex and innovative funding solutions for projects that trade on a predominantly merchant basis. Battery Energy Storage is an important and fast- growing sector that we are keen to support.

“This was also a key project for the bank as it was our first SONIA linked transaction completed under a project finance structure. This project was delivered alongside our specialist relationship banking team, led by Rakesh Ramana. Rakesh and I look forward to working closely with Olivia and the SWGT team on future projects and positively contributing to the wider climate change agenda.”

Santander was advised by TLT LLP (legal), RSM (financial model) and Aon (insurance).

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