Watson Farley & Williams (“WFW”) advised NatWest and SMBC as lenders on a debt financing and an uncommitted accordion facility granted to Macquarie-backed Eku Energy to finance the construction of its new Ocker Hill battery energy storage system (“BESS”) in the West Midlands, UK.
The accordion facility will support Eku Energy’s near-term UK projects, including a 1 GW portfolio of seven BESS projects recently acquired from Bluestone Energy. The 99 MW/198 MWh Ocker Hill BESS will use 54 Tesla Megapacks and will be built by H&MV Engineering as the Balance of Plant contractor using Tesla’s technology. SmartestEnergy, a 100% owned subsidiary of Marubeni Corporation, will serve as the tolling provider under a ten-year agreement.
Ocker Hill BESS will be built close to the site of the former Ocker Hill coal-fired power station near Dudley and Wednesbury. The old Ocker Hill power station closed in 1977 and was demolished in 1985. Construction of the BESS is set to begin in June 2025 and is expected to be commissioned in late 2026. It is Eku Energy’s fourth energy storage project in the UK.
The WFW London Energy team that advised the lenders was led by Global Energy Sector Head and Head of the London Projects Group Henry Stewart. He was supported by project finance Senior Associates Gavin Jackson and Victoria Jones, Associates Sindana Ulaganathan, Ellen Mackie, Georgina Somers and Esteira Hiwaizi, and Trainees Matthew Ward, Tom O’Kane and Sofia Koukouli. Project development expertise was provided by Partner Emmanuel Ninos, Senior Associates James Ballantyne and Associate Ben Harvey. Partner Nick Walker provided regulatory advice with support from Associates Hamish Ungless and Jo Strachan. Hedging advice was provided by Associate Kristina Buckberry and Trainee Luke Stafford. Partner John Rosmini and Associate Mia Langston advised on the real estate aspects of the transaction. Associate Pip Moss advised on tax law, and Associate Idil Yusuf and Trainee Hayley Rowcliffe provided corporate advice.
Henry commented: “We are very pleased to have advised the lenders on this key BESS project. The use of BESS technology plays a significant role in the UK’s energy transition. The transaction not only showcases WFW’s extensive expertise in renewable energy project financings but also the depth of our energy offering as a whole”.
