Corre Energy has partnered with SemperPower, a leading Dutch developer, financier, and operator of battery energy storage systems (BESS), to deliver one of Europe’s largest battery storage facilities at its Zuidwending site in the Netherlands.
SemperPower, owned by Return Energy, a significant renewable energy investment platform, will collaborate with Corre Energy to deliver the 320 MW 2-hour battery project, totaling 640 MWh. The 50/50 joint venture (JV) will initially invest €7 million, with Corre Energy’s share covered by existing project investments.
Benefits and Alignment with Existing Plans
The project will play a crucial role in grid balancing for the Netherlands, accommodating increasing supplies of intermittent renewable energy while positively impacting society and the environment.
The JV estimates that the project will eliminate over 70,000 tons per year of carbon dioxide emissions. Additionally, it complements Corre Energy’s compressed air energy storage (CAES) plans, generating a near-term, additional revenue stream.
SemperPower’s Expertise and Responsibilities
SemperPower will contribute its expertise in battery infrastructure sourcing, development, and operations. It will also finalize offtaker agreements and project financing with select partners, leveraging access to significant debt facilities.
SemperPower’s extensive experience in battery development, including three operational projects in the Netherlands and a substantial pipeline backed by Return Energy, further strengthens the JV’s capabilities.
Financial and Operational Targets
The JV is aiming for a fixed 10-12 year offtake agreement to mitigate market revenue risk. The final investment decision (FID) is targeted for late 2025, propelling the project to the next phase and generating development fees in line with industry standards.
The capital expenditure (CAPEX) during construction and installation is estimated at approximately €300 million, with recurring annual income secured by the project’s offtake agreement once commercial operations commence, expected in 2026.
Integration with CAES Facility
The battery facility will share grid infrastructure with Corre Energy’s planned CAES facility. Upon completion, the combined battery and CAES projects will establish a multi-duration energy storage hub for the region, offering storage solutions ranging from milliseconds to multiple days, a model being explored across other Corre Energy projects.
Local and national consultations will now take place for the battery project. Further updates on the timeline and specifics of both the battery and CAES projects will be provided as they become available.
Statements from CEOs
Keith McGrane, CEO of Corre Energy, remarked on the partnership’s significance, stating, “This major new partnership with SemperPower and Return Energy accelerates and broadens our income profile for Zuidwending while delivering critical storage to meet future energy consumption needs.
This milestone secures immediate investment to fund the venture, followed by further payment at FID, and represents a model to realize nearer-term cash flows alongside our CAES development.”
Dennis Schiricke, CEO of SemperPower, emphasized the project’s potential benefits, saying, “We are pleased to announce our cooperation with Corre Energy, leveraging our complementary capabilities to realize this significant project.
As creators of capacity, our mission is to make electrical storage capacity available to the market.” He added that the project would bring numerous benefits to the local region, including enhanced energy security, job creation, and a boost to the local economy.