A battery storage group that is operating and building sites across the Ƶ has secured a £220m green debt deal from a consortium of six banks.
Pulse says the deal shows growing commercial confidence in the energy storage sector. The company had won backing in May 2023 from a consortium involving the National Wealth Fund (NWF), in what was NWF’s first debt transaction in battery storage. Now the interest from commercial banks means NWF can step back.
Santander Corporate & Investment Banking served as Green Loan Coordinator for the banking consortium including Santander, NatWest, ABN AMRO, NORD/LB, Investec, and CIBC. The latest debt raise was structured in alignment with the Green Loan Principles of the Loan Market Association.
Pulse says the financing will allow it to start work on six ready-to-build battery energy storage system (BESS) sites. It will also support the ongoing funding of seven existing sites and two sites under construction in Town Lane, Manchester, and at Overhill, near Aberdeen.
Pulse’s existing Battery Energy Storage Projects include two in Greater Manchester, sites at Hirwaun, Tir John and Briton Ferry in South Wales, Flatworth in Tyne & Wear, and Willoughby in Leicestershire.
The company says the six new projects, which will include one in Devon, will collectively provide over 700MWh of capacity and “will create over £200m in gas and emissions savings for Ƶ consumers”.
Pulse says all of the battery energy storage systems financed by this deal are set to be operational by the end of 2027.
Nicola Johnson, chief financial officer of Pulse Clean Energy, said: “This landmark investment reflects strong global confidence in the growing Ƶ battery storage market and in Pulse Clean Energy’s ability to deliver at scale. These six facilities will not only strengthen grid resilience but also unlock significant cost savings for consumers by allowing more renewable power onto the grid and reducing the need for expensive backup power during peak periods.
“We’re proud to be at the heart of the Ƶ’s energy networks – delivering critical infrastructure and turning former fossil fuel sites into energy assets which will enable a better energy system. With the backing of partners who share our long-term vision, we’re accelerating toward a future where energy is not only clean, but reliable and affordable for everyone.”
Javier Trueba, managing director at Santander Corporate & Investment Banking, said: “This transaction reinforces Santander CIB’s commitment to supporting the energy transition in the Ƶ, in particular focusing on facilitating the construction of battery storage as a key infrastructure component of that transition. We are proud to have supported Pulse Clean Energy in this exercise, whose vision, determination, and technical expertise underpin this very high quality portfolio.”
Pulse Clean Energy was advised by Eversheds Sutherland as legal counsel, with Watson Farley & Williams acting as the lender’s legal counsel and Chatham Financial as hedging advisor. Timera provided market advisory, Everoze served as technical and ESG advisors, Operis supported as model auditor and tax advisor, and Willis Towers Watson advised on insurance.
