NatWest's £58m Investment in Varco's BESS Projects
- Varco Energy secures £58 million in debt financing from NatWest to fund two 114MW Battery Energy Storage Systems in the UK. The projects will support UK's transition to net zero emissions, providing stability and load shifting services to the National Grid.
Varco Energy has secured £58 million of debt financing from NatWest to fund two Battery Energy Storage Systems (BESS) in the UK. The Native River and Sizing John projects, located in Liverpool and St Helens respectively, will have a combined capacity of 114MW and are scheduled to become operational in late 2024. The financing includes a £50 million capex facility, an £8 million VAT facility, and an interest rate hedging facility. The projects will provide localised balancing and stability services to the National Grid system operator, as well as load shifting capabilities to facilitate high penetration of renewable energy across the UK. With the funding from NatWest, Varco Energy can deliver its first utility-scale BESS projects to contribute to the UK's transition to net zero emissions.
What Benefits Will Varco Energy's BESS Projects Bring to the UK?
- Increased Grid Capacity: By providing localised balancing and stability services, Varco Energy’s BESS projects will help to increase the capacity of the National Grid.
- Improved Security of Supply: With the load shifting capabilities of the BESS projects, they will help to ensure reliable energy supplies by optimising the integration of renewable energy.
- Flexible Power Generation: The BESS projects will enable more flexible power generation, allowing the grid to adjust to varying needs and support the shift away from traditional power sources.
- Reduced Carbon Emissions: The projects will play an important role in the UK's transition to net zero emissions, reducing reliance on fossil fuels and other carbon-intensive sources of energy.
- Local Economic Development: The projects will bring economic development to the areas in which they are located by creating local jobs and opportunities.