Fidra Energy secures £445m financing for Thorpe Marsh BESS project in UK

Fidra Energy has received up to £445m ($601.1m) in equity investment from EIG and the National Wealth Fund (NWF) for the Thorpe Marsh battery energy storage system (BESS) project in South Yorkshire, UK.

With the equity investment, alongside £594m in potential loan facilities from international lenders, the company has reached financial close for the project.

The Thorpe Marsh project, designed to have a capacity of 1.4GW/3.1GWh, is projected to start operations in mid-2027. It is touted to become the largest battery storage facility in the UK.

Fidra Energy CEO Chris Elder said: “Reaching financial close for Thorpe Marsh is a huge achievement for Fidra Energy. Thorpe Marsh is one of the most exciting infrastructure projects in the world and a landmark transaction in the energy sector.

“The investment by EIG and the NWF is testament to the outstanding team at Fidra and everyone who has supported us on the project.”

Fidra Energy has awarded a contract to Sungrow to supply its Power Titan 2.0 batteries. H&MV Engineering, meanwhile, has been contracted to manage grid connections and electrical work for the Thorpe Marsh project.

Also, Jones Bros Civil Engineering UK has been selected as the principal contractor for the civil and drainage tasks on site.

Upon completion, Thorpe Marsh is anticipated to provide over two million megawatt hours annually to power more than 785,000 homes.

EIG managing director and energy transition global head Walid Mouawad said: “EIG is pleased to support the development of the Thorpe Marsh BESS project.

“We are also thrilled to welcome the National Wealth Fund as our partner in Fidra Energy, which builds on our platform strategy of identifying market opportunities.”

Fidra Energy has secured long-term offtake agreements with energy companies EDF, Octopus Energy, and Statkraft, for nearly 80% of Thorpe Marsh’s capacity.

In addition, the BESS project is backed by a 15-year capacity market award from the UK government, effective October 2028.

Santander CIB, New End, and EIG Global Energy Partners Capital Markets served as financial advisers on the capital raise while Santander CIB alone served as financial adviser on the debt financing.

NWF interim CEO Ian Brown said: “The NWF is set to play a meaningful part in helping the UK achieve its clean energy ambitions, through our support for this and other key projects.

“Our investment highlights our role as a significant player in the storage sector, and, working alongside EIG and Fidra, we’re helping to provide the finance needed to deliver large-scale battery assets to improve grid stability and further enhance the UK’s energy independence.”