Energy team advises Zenobe over debt facility for increased capacity 300MW BESS site in Scotland

3 minute read
01 February 2024

The Energy team has advised the seven commercial lenders to the battery storage developer, Zenobe, over additional debt for its increased capacity 300MW battery storage site in Kilmarnock South, Scotland.

The 300MW/600MWh Battery Energy Storage System (BESS) is expected to reach operational status in 2025. Following earlier advisory by Gowling WLG, Zenobe initially secured a debt package in February 2023 to finance the construction of a portfolio of two projects in Scotland. The original facility has now been boosted by approximately £147 million, as Zenobe was able to increase Kilmarnock's capacity from 200MW to 300MW.

The increase in debt is supported by two new lenders, ABN AMRO and SMBC Group, joining the consortium, which includes NatWest, Canadian Imperial Bank of Commerce, Rabobank, Santander UK, and Siemens Bank. In total, Zenobe have secured £282 million in debt for the construction of the two projects with £400 million accordion to support further pipeline projects and augmentation of existing sites in the UK.

The team from Gowling WLG which advised the lenders included Nath Curtis and Kate Shannon.

Nath Curtis commented: "This debt financing represents another step forward for the UK battery storage sector, and for Zenobe's pioneering transmission-connected battery project, aiming to reduce the amount of wind generation curtailed due to a lack of grid infrastructure capacity. The project also marks another step forward in Gowling WLG's battery storage financing offering and support of green energy projects domestically and internationally.

We are delighted to have supported our clients and the deal team in reaching financial close, to further accelerate the delivery and uptake of renewable power in the UK, in the transition to net zero emissions. With construction due to start imminently, we look forward to seeing the completed facility in the near future."

Gowling WLG's Energy team operates internationally, serving clients in numerous energy technologies, including ag-energy, biogas, capacity markets, energy storage, geothermal, hydro, hydrogen, nuclear, oil and gas, solar, and wind. We advise governments, regulators, project developers, network companies, financial institutions and investors, energy suppliers and traders, technology companies and sector supply chains, among others.

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