Managing the transition

Established in 2016, Pacific Green Technologies has dedicated itself to creating a cleaner environment. Over the past seven years, the company has grown from a start-up with a focus on installing and operating marine exhaust gas scrubbers, to a broad-spectrum developer and facilitator of new renewable energy technologies including energy storage systems. 

In 2021, Pacific Green Technologies obtained an exclusive agreement to supply over 1.1 gigawatt/hour (GWh) of battery-based energy storage (BESS) in the UK. BESS is critical infrastructure, eliminating the intermittent nature of renewable energy generation and breaking UK’s reliance on fossil fuels. Pacific Green Technologies already have one site under construction in the UK, Richborough in Kent, while site work for Sheaf Energy Park is underway, a 1.5hr, 249MW/373.5MWh transmission connected battery energy storage system. 

Two-bank syndicate provides combined £125.6 million facility

When Pacific Green Technologies started to look for financing for its Sheaf Energy Park project, which is expected to be operational by Q2 2025, the company approached NatWest, which has arranged, structured and advised multiple ‘first of their kind’ financings in the sector to support the rollout of BESS assets.

Following discussions with the Pacific Green Technologies team and a detailed analysis of the business’ funding requirements and forecast revenue streams, the NatWest team successfully led and coordinated – in the role of lead Structuring Bank, Agent, and Security Trustee – a syndicated financing of a £120 million capex facility and a £5.6 million VAT facility for Sheaf Energy Limited, a wholly owned subsidiary of Pacific Green Technologies. The two-bank syndicate includes the UK Infrastructure Bank (UKIB) and NatWest, with each holding an equal 50% share in the capex facility, with NatWest solely funding the VAT facility. NatWest also acted as FX and hedge counterparty for the transaction.

BESS financing aligns with NatWest’s purpose to support transition to a greener economy

Scott Poulter, Pacific Green Technologies, commented: “We are excited to have reached this milestone. The new financing package enables us to deliver much needed battery-based energy storage, which is key for the successful adoption of renewable power, and ultimately achieving net zero. We thank the NatWest team for their excellent guidance and support.”

Jacob Lloyd, Head of Specialist Asset Finance at NatWest, said: “We are delighted to support Pacific Green with this financing which aligns closely with our purpose to champion potential and to proactively support the UK’s transition to a greener economy. The deal not only showcases NatWest’s ability to support the customer journey holistically by acting as lead Structuring Bank, Agent, Security Trustee, FX and Hedge Counterparty in this important battery storage project, but it is also testament to our commitment to provide £100 billion of climate and sustainable funding by 2025.”

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