Plans to create one of the largest battery storage facilities in the 海角视频 at the site of the former coal powered Uskmouth Power Station in Newport have been boosted with a £8.5m loan from the Cardiff Capital Region.
Following the sale of its first 240 megawatt battery storage facility in 2023 to Quinbrook Infrastructure Partners, Simec Atlantis Energy is now taking forward plans for new three new battery storage projects, which they view very much as long-term investment holds, at its Uskmouth Sustainable Energy Park.
Battery storage facilities effectively store excess energy generated to demand in the grid and release it back when supply levels dip.
Its Afon Wysg 1 (AW1) - River Usk in English - project has secured loan funding, at a commercial rate of interest, from the Cardiff Capital Region’s Strategic Premises Fund.
The 120 megawatt AW1 scheme, which has planning consent and an approved connection to the National Grid, is expected to become operational in 2026. Simec’s planned 250 megawatt AW2 project has a connection to the grid agreement for 2029 and its 349 megawatt AW3 scheme for 2037 - although as part of plans to accelerate consents this could be shortened.
With each battery storage facility designed to be able to increase its megawatt per hour capacity, the projects are expected to create 500 construction related jobs over a rolling decade period.
The city region said its loan will support pre-construction and construction associated with AW1 - alongside an estimated additional £56.5m of private sector finance.
A second tranche from the £8.5m will become available when the AW2 project receives planning permission, which is expected later this year. The loan has to be repaid in full by June, 2028
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Chief executive of Alternative Investment Market listed Simec Atlantis Energy, Graham Reid, said: “We would like to thank all those involved at CCR and all our supporters who have helped secure this loan. This is a strategic investment in a critical project for the region.
“In 2024, we launched our strategy, which sets out a path to deliver a pipeline of projects to achieve our goal of being a leading sustainable project developer, owner and operator, ensuring long-term value for our shareholders. The delivery of the AW1 project is key to delivering this strategy, and everyone at Simec Atlantis Energy is focused on achieving financial close for our flagship AW1 project, which we aim to reach in the next few months.”
Andrew Morgan leader of Rhondda Cynon Taf Council and portfolio lead for the Strategic Premises Fund said: “The fund is contributing vital funds on a commercial loan basis alongside private sector investment to help make this site viable for energy storage. Repurposing the former power station at Uskmouth delivers multiple benefits for local communities, businesses, the environment and wider society. This project demonstrates what can happen when the public and private sectors combine to support our energy needs for the future.”
Leader of Newport Council Dimitri Batrouni, said: “This project represents a tremendous economic and sustainable energy opportunity for Newport. I’m excited about what this can deliver for people in Newport and across the region, with employment opportunities, skills development for young people through apprenticeships, and delivering cutting-edge infrastructure projects that align with our regional ambition to grow the green economy.”
The Cardiff Capital Region is made up of the ten local authorities of south east Wales. It is now a statutory body. Its £50m Strategic Premises Fund, initially funded from the region’s £1.2bn City Deal, will reinvest returns on its lending into new projects as part in an evergreen investment strategy approach.