Zenobe secures funding from Santander to power battery project in Merseyside
Zenobe, an owner and operator of battery storage, has received increased support from Santander UK, taking its funding – a non-recourse debt facility – from the bank to more than £60m, in an effort to power its growing battery portfolio.
The latest funding follows the successful £150m of equity Zenobe raised from Infracapital, the infrastructure equity investment arm of M&G Plc, in 2020, as part of Zenobe’s aim to accelerate the UK’s transition to a green energy system.
Zenobe is a battery storage firm, with 75 MW of operational grid-scale batteries, which provide a range of services including balancing, dynamic containment, and reactive power services in the UK to National Grid.
With additional funding committed from Santander UK, Zenobe will begin construction on its flagship 100 MW/107 MWh battery at Capenhurst, near Chester, which will be Europe’s biggest battery and the world’s first to absorb reactive power directly from the transmission grid. The project will cost tens of millions of pounds and should be completed by April 2022, when it will be capable of supplying enough electricity to meet the needs of more than 100,000 homes for an hour at peak demand.
In addition to the committed funds for the Capenhurst project, the funding includes an uncommitted £30m facility to support future growth aspirations and new projects being developed by Zenobe.
Nicholas Beatty, Co-Founder and Director, Zenobe, said: “The expansion of our Santander UK facility to over £60m demonstrates Zenobe’s continuing leadership in the sector with its focus on innovation within the technology, operational and financing sides of the business. The additional debt raised and committed will be crucial in allowing us to roll out this project and our future pipeline of battery energy storage projects across the UK.”
Mark Cumbo, Director, Specialised & Project Finance, Santander UK, said: “We are delighted to support Zenobe with this landmark transaction and to have further cemented our relationship with this exciting company. It’s a pleasure to work with established and ambitious management teams like that of Zenobe, to deliver complex funding solutions and unlock growth opportunities. With the combination of equity and Santander debt, Zenobe can continue to grow the business and deliver on its strategy in the developing battery storage sector.”