April 2021: Corre Energy Announcement of ZW1 and Infracapital Transaction
Corre Energy partners with Infracapital and secures development capital for its initial Compressed Air Energy Storage (CAES) Project
April 2021
LONDON – Corre Energy BV (‘Corre Energy’) announced on 31st March that it is partnering with Infracapital to deliver its flagship Compressed Air Energy Storage (“CAES”) project in Zuidwending, the Netherlands. This project has been in development since 2017 and is expected to reach commercial close this year.
The project is a European Project of Common Interest (PCI) and has already received c. €4.4m in EU grants. The investment partnership with Infracapital will bring both long term capital support and proven experience in developing high growth essential infrastructure projects. The project is expected to have an operating life of at least 35 years.
Corre is developing approximately 10 large-scale, hydrogen-fuelled energy storage projects across northern Europe to address the grid-level imbalances created by the increasing volumes of renewable energy generation. Long duration grid-scale storage being pioneered by Corre Energy is a critical enabler of the energy transition, with strong demand for Corre Energy’s projects coming from governments, grid operators, utilities, power producers and energy-intensive industries.
“We intend to build at least ten grid-scale hydrogen-fuelled compressed air energy stores across Northern Europe. To do so requires partnership with best-in-class providers of technology, finance and services. We have benefited enormously from the advice and assistance of Cameron Barney in achieving our fund-raising objectives and in Infracapital we now have a partner with a wealth of development and commercial expertise and an extensive network of relationships in addition to its significant
capital resource.”
“Raising money for an entirely new asset class where each individual project consumes at least €350million in capital and takes several years to develop and commission requires time and very careful thought. But most importantly it takes knowledge, skill, energy and passion from the company itself – and Corre Energy has these qualities in abundance. We have really enjoyed working with the Corre Energy executive team over the past 12 months and achieving this truly landmark result.”
About Corre Energy BV
Corre Energy is accelerating the energy transition through underground energy storage by developing, designing and commercialising grid-scale storage systems in salt caverns, specifically Compressed Air Energy Storage (CAES) and hydrogen-based systems. Its pipeline of projects provides for the deep integration of renewables and the decarbonisation of energy systems at a national and continental scale. The need for grid-scale storage is increasing rapidly and is recognised by energy generators and utilities, European governments and the European Commission as a critical component of the future energy system as the proportion of distributed renewable generation increases.
About Infracapital
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. Infracapital takes an active role in all its investments, whether nascent or large, to fulfil their potential and to ensure they are adaptable and resilient. Infracapital’s approach is to create value for investors by targeting investments with the scope for stable and sustainable growth. Its portfolio companies work closely with the communities where they are based to the benefit of all stakeholders. Infracapital is well-positioned to deliver the significant investment required to help portfolio companies build for the future. The founder-led team of experienced specialists has worked with more than 50 companies around Europe and has raised and manages over £6.5 billion of client capital across six funds.
Infracapital is part of M&G Plc, a leading European savings and investments business. M&G manages the long-term savings of more than 5 million people and is a major investor in the UK and in the global economy. Total assets under management and administration are £367 billion ( at 31 December 2020).
