TLT acts for NORD/LB on financing of battery storage project at Uskmouth
TLT has advised Norddeutsche Landesbank Girozentrale (“NORD/LB”) a leading German landesbank on the successful financial close of the AW1 Battery Storage project, a flagship development by SIMEC Atlantis Energy (SAE) now known as Ampeak Energy Limited (“Ampeak”) at the Uskmouth Sustainable Energy Park (USEP) in Newport, Wales.
The project represents a major step forward in the UK’s energy transition and battery storage infrastructure.
The AW1 project is a 240 MWh battery storage facility, with potential expansion to 480MWh, making it one of the largest of its kind in the UK. The project has an anticipated commercial operations start date during Q1 2027.
TLT advised NORD/LB on all legal aspects of its £45.3 million non-recourse project finance facility with a comprehensive security package, including the drafting and negotiation of bespoke finance documents to account for the specifics of the deal structure.
The transaction also involved equity investments and shareholder loans from SAE and BESS Investment UK Limited, alongside a strategic land sale and leaseback arrangement with EL (Uskmouth) Limited.
The NORD/LB team led by senior director Florian Hock and supported by Nick Little, Oliver Teller and Khilan Pindolia has a strong focus on the financing of renewables projects and has over 30 years of experience in this sector. The financing will support the development and construction of the project by AW1 Energy Storage Limited (AWES), a subsidiary of SAE.
The transaction was led by Victoria Quek, Partner in TLT’s Project Financing team, with support from Winnie Ma and Hugo Khan who were instrumental in achieving a successful financial close for the transaction. The deal also had cross-practice support from Michael Kruger, Toby Morsley, Amber Bains, Nick Pincott, Greg Pringle, Victoria Howson and John Arthur.
Florian Hock, Senior Director at NORD/LB said: “Repurposing former fossil fuel sites like Uskmouth into a force for clean and sustainable energy is a shining example of what is possible as part of the renewable energy transition.
“We’re delighted to work with TLT in supporting SAE in turning Uskmouth into one of the UK’s largest BESS sites, which will not only help the UK to realise its net-zero ambitions, but also ensure vital energy security and grid stability going forward.”
Victoria Quek, Partner at TLT said: “This is a transaction which underlines the growing importance of battery storage in the UK’s energy market. The AW1 project is a transformative development for the region and a strong example of sustainable investment in action. We worked closely with the NORD/LB team and Elgar Middleton the financial advisers to develop strategic solutions in order to optimise SAE’s financing and commercial requirements.”
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