Copenhagen Infrastructure Partners (CIP), on behalf of its fund Copenhagen Infrastructure IV (CI IV), has signed an agreement to divest a 50% ownership stake, upon site commissioning, to AXA IM Alts, a global leader in alternative investments.
Coalburn 1 is a 500MW, 2-hour duration, lithium ion battery energy storage system (BESS), located in South Lanarkshire, in southern Scotland. CIP took a financial investment decision for Coalburn 1 in December 2023 and will continue to lead Coalburn 1 project delivery through its current construction phase, and beyond the site’s commissioning which is expected in early 2026. The project has a high level of contracted revenues through a 10-year optimisation agreement with SSE, alongside a 15-year capacity market agreement.
Coalburn 1 is one of three transmission-connected BESS assets currently being constructed by CIP in Scotland, which collectively will have a total power capacity of 1.5GW and will be able to store and supply the grid with a total of 3GWh of electricity, enough to supply over 4.5mn households for two hours. CIP is developing a further 4.5GW of BESS project across Scotland and England.
Coalburn 1 is part of an expanding CIP portfolio of UK energy infrastructure investments – CIP’s CI V flagship fund recently announced that it exceeds the fund size of EUR 12 billion and invests in a range of renewable technologies from wind and solar PV to energy storage across Europe (including the UK), North America and Asia Pacific. CIP’s portfolio of battery projects across the US, UK, Europe and Australia makes the company one of the leading investors of battery storage projects globally.
Nischal Agarwal, CIP Partner, said: 'As CIP’s development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming AXA IM Alts as a new partner on our Coalburn 1 site, which once commissioned in 2026 shall be Europe’s biggest operational BESS project. The delivery of Coalburn 1, alongside CIP’s Coalburn 2 and Devilla construction projects, will improve the UK’s energy security, enable more low cost renewables to be delivered, and will act to reduce costs for British consumers through enhanced system flexibility.'
Mark Gilligan, Head of Infrastructure, AXA IM Alts, commented: 'Our investment in Coalburn 1 marks a significant milestone as we enter the UK energy storage market, reinforcing our commitment to supporting the transition to a zero carbon economy. Battery storage infrastructure is critical to achieving national energy security and unlocking the full potential of renewable energy, and we look forward to working with experienced leaders of the sector to deliver resilient, long-term value for communities, our investors and the environment.'
CIP’s agreement to partially divest a stake in Coalburn 1 benefited from advice given by Ashurst (Legal Advisers: www.ashurst.com) and RBC Capital Markets (Financial Advisers: www.rbccm.com).
Source: CIP via GlobeNewswire
