Eku Energy has secured more than £45 million in debt financing from NatWest Bank and Sumitomo Mitsui Banking Corporation (SMBC) to construct a new 99MW/198MWh Battery Energy Storage System (BESS) located at Ocker Hill, between the towns of Dudley and Wednesbury in the West Midlands.
In addition to the asset specific financing, SMBC and NatWest have provided an uncommitted accordion facility of £100 million to support funding of Eku Energy’s near-term UK projects, including some of the recently announced projects under development as a result of Eku Energy’s recent Bluestone Energy BESS portfolio acquisition*.
With construction set to begin next month, the Ocker Hill BESS is expected to be commissioned in late 2026 and is Eku Energy’s fourth energy storage project in the United Kingdom to either be in operation or under construction. The Ocker Hill BESS will use 54 Tesla Megapacks, and the project will be built by H&MV Engineering as the Balance of Plant contractor. H&MV Engineering have been selected for its high-quality design and proven experience in delivering BESS projects using Tesla’s technology. SmartestEnergy, a 100% owned subsidiary of Marubeni Corporation, will serve as the tolling provider under a 10-year agreement.
The Ocker Hill BESS will be built close to the site of the former Ocker Hill coal-fired power station which stood for more than 80 years from when it first opened in 1902 until its closure in 1977 and final demolition in 1985.
“40 years after the demolition of the original coal-fired power station at Ocker Hill, the nearby Ocker Hill BESS will be providing energy and grid services,” said Elias Saba, Chief Technology Officer at Eku Energy. “With Ocker Hill BESS and its innovative long-term offtake from Smartest Energy, we further enable the energy transition and uptake of renewable energy.”
Daniel Burrows, Chief Executive Officer at Eku Energy, said, “Eku Energy’s growing portfolio in the United Kingdom reflects our commitment to deliver safe, secure, and reliable energy storage solutions that will provide cost-effective clean energy. By securing strong financial backing from NatWest Bank and Sumitomo Mitsui Banking Corporation for the Ocker Hill BESS and partnering with Tesla and SmartestEnergy, we are continuing to expand our role in building a more flexible and resilient energy system for the United Kingdom.”
Mahu Raval, Senior Vice President of Trading at SmartestEnergy, said, “We are delighted to be partnering with Eku Energy on the tolling agreement for the Ocker Hill BESS. This project is the longest tolling agreement announced to date in the United Kingdom and shows our commitment to Eku and the BESS business case they built. BESS is crucial for greater grid reliability and it provides value for end customers. At SmartestEnergy we are always willing to support our customers and partners as they navigate their way towards a cleaner, more resilient future.”
Eku Energy was supported by its advisors across the transaction; NatWest (financial advisor), CMS (Borrowers legal), Watson Farley Williams (Lenders legal), DNV (technical), Operis (model audit), WTW (insurance), Lockton (Broker), Chatham Financial (hedging advisor).
* On April 14, 2025, Eku Energy made public that it has acquired Bluestone Energy’s portfolio of energy storage development projects in the United Kingdom. The portfolio includes seven planned BESS projects with a combined capacity of 1GW / 2GWh.
