By BEN COOK
- US solar plus storage projects particularly attractive to investors
- Banks and funds also investing in UK battery storage sector
- Yorkville Advisors and Investec among those featuring in recent storage deals
Opportunities abound in the US and UK storage sectors and investors view both markets as having significant growth potential.
US solar plus storage projects have proved to be particularly attractive in recent weeks with banking and wealth management company Investec and energy transition investment company Captona among those to have finalised deals.
Elsewhere, Yorkville Advisors entered into an agreement that could result in a $200 million boost for US storage.
Energy Storage Report brings you a breakdown of five recent high-profile deals involving the aforementioned investors, detailing the size of the institutions making the investment and the names of the key individuals running the funds and overseeing the deals in question.
Deal 1: US energy storage system provider Eos Energy Enterprises Inc enters into a $200 million common stock standby equity purchase agreement (SEPA) with an affiliate of financing partner Yorkville Advisors. The purchase agreement gives Eos the right, but not the obligation, to sell up to $200 million of common equity to an affiliate of Yorkville at the time of Eos’s choosing during the two-year term of the agreement.
A global investment manager that has been involved in $4.5 billion worth of transactions since its inception.
Key Figure: Mark Angelo, president and partner Founded Yorkville Advisors in 2001. Prior to that, he held senior roles at the May Davis Group and the Boston Group.
He said: “We are excited to work with the management team at Eos and to have a front row seat as the world continues its transition to cleaner energy.”
Deal 2: US-based Cypress Creek Renewables and bank Investec close a $125 million debt facility to further fund the growth of Cypress Creek’s solar and storage pipeline.
A bank with £63.4 billion of funds under management. In February this year, it issued its first green bond, which referenced five of South Africa’s leading wind and solar projects.
Key Figure: Fred Petit, head of renewables for Investec’s North American power & infrastructure group Prior to joining Investec, Petit was a director in Credit Agricole Corporate & Investment Bank’s energy & infrastructure group, where he executed structured finance transactions ranging from $120 million to $12 billion in the North American energy sector.
He said: “We worked with CCR [Cypress Creek Renewables] to identify a syndicate of lenders that could deliver a cost-effective financing for CCR’s development needs. This financing confirms Investec’s commitment to ESG and our excellent distribution capabilities.”
Deal 3: The UK Infrastructure Bank announces it will be the cornerstone investor in an Octopus Investments fund that will provide scale-up capital for UK sustainable infrastructure projects including battery storage and electric vehicle charging. the bank will invest up to £100m in the Octopus Sustainable Infrastructure Fund on a match-funding basis, unlocking between £100m to £300m of private capital.
UK INFRASTRUCTURE BANK
A UK government-owned policy bank providing £22bn of infrastructure finance, and partnering with the private sector and local government to finance a “green industrial revolution”
Key Figure: Chief executive John Flint Former group chief executive of HSBC, where he spent 30 years, having first joined them in 1989 as a graduate trainee.
He said: “This investment could unlock over £100m of private funding into new green industries and help people across the UK to benefit from innovation in their local area. We are happy to work alongside Octopus Investments to help innovative green projects access the finance they need.”
Deal 4: London-listed renewable energy and storage fund Bluefield Solar Income Fund acquires two standalone 40 MW battery storage projects from Green Hedge Energy UK Limited for approximately £4.5 million.
BLUEFIELD SOLAR INCOME FUND
Investment company – with a net asset value of £630 million – focused on the acquisition and “long-term management” of low carbon assets in the UK
Key Figure: John Rennocks, chairman Holds a number of roles including non-executive deputy chairman of Inmarsat plc and a non-executive director of Greenko Group plc. Earlier in his career, he was CFO at Powergen
He said: “Energy storage has a key role in supporting the decarbonisation of the electricity system in Great Britain. Once operational, it is intended the assets will be able to participate in a variety of valuable services to support the grid and to enable the company to further diversify its revenue streams.”
Deal 5: Captona and South Jersey Industries acquire a 5.66 MW solar and 5.2MWh storage facility in Agawam, Massachusetts from Consolidated Edison Solutions Inc.
Has deployed “under $1 billion” of equity and debt capital to construct, acquire, and operate renewable and clean energy infrastructure assets across several projects throughout North America.
Key figures: Izzet Bensusan, managing partner and founder, and Roshni Mali, managing partner Prior to founding Captona, Bensusan founded Karbone, a financial services company focused on renewable and traditional energy markets. Meanwhile, Mali was previously a member of Karbone’s capital markets team.
Izzet Bensusan said: “Captona’s partnership with South Jersey Industries continues to push the boundaries of the energy transition as we add new technologies to our fleet. Investments in base-load technologies that promote grid stability and positively impact the community are at the forefront of Captona’s decarbonisation mindset.”
IMAGE (Clockwise from top left): Roshni Mali (Captona); John Rennocks (Bluefield Solar Income Fund); Fred Petit (Investec); John Flint (UK Infrastructure Bank); Mark Angelo (Yorkville Advisors); and Izzet Bensusan (Captona)