Varco Energy (Varco), a pioneering UK-based battery storage asset owner and operator, has secured £58 million of debt financing facilities with NatWest to help fund its pipeline of Battery Energy Storage Systems (BESS).
With strategic advice from Carlingford, a division of GFI Securities Limited, Varco Energy approached NatWest to help with the funding of its Native River and Sizing John BESS projects, which are both forecast to be operational in the last quarter of 2024. Following detailed analysis of Varco’s funding requirements and forecast revenue streams, NatWest agreed to provide, as sole lender, a £50 million capex facility, as well as an £8 million VAT facility, and an interest rate hedging facility.
Varco has two BESS assets in the UK; Native River, a 57MW/138MWh transmission connected BESS south of Liverpool, and Sizing John, a 57MW/138MWh transmission connected south of St Helens. These assets, both being situated within a particularly congested part of the UK’s high voltage grid, will be able to provide localised balancing and stability services to the National Grid system operator, as well as broader load shifting capabilities to enable high penetration of renewable generation across the broader UK system.
Varco, an Adaptogen Capital funded BESS operating company, is on a mission to drive the UK’s energy transition to a net-zero future by building a flexible energy storage portfolio. By helping to integrate renewable energy generation and balance the grid, Varco makes sustainable energy accessible and affordable for all consumers.
