The image shows a key visual for a lithium-ion battery with a white background and a black outline.

Storing energy to secure a renewable future

If renewable energy sources are to provide a reliable alternative to fossil fuels, battery storage is an essential element of future electricity grids. Learn how financing makes a difference.

As the world increasingly moves toward renewable energy sources such as wind and solar, sufficient battery storage capacity is a must in order to ensure a safe and stable supply of electricity at all times.

Battery storage will therefore play a pivotal role in achieving the UK Government’s ambitions to decarbonize all sectors of the country’s economy to meet net zero targets by 2050, as well as the Scottish government’s goal to deliver 20 GW of additional low-cost renewable electricity generation capacity by 2030. Against this background, Siemens Financial Services (SFS) is providing financial support to battery storage and EV fleet specialist Zenobē – funding which is critical to its ambitions to grow quickly, scale the business and make a significant contribution to the UK’s climate targets.

Wind turbines and solar panels in a green field under a blue sky with white clouds

A person is standing in front of a white wall with a black border, wearing a black shirt and a black hat.

Zenobē required financing to construct two utility-scale battery storage projects, Blackhillock & Kilmarnock, with a combined capacity of 400 MW / 800 MWh, and the ability to expand by a further 100 MW / 200 MWh each. By storing electricity at times of peak renewable generation and releasing it across the UK when it is needed most, the Battery Energy Storage Systems (BESS) will enhance grid efficiency and help to balance supply and demand.

The project constitutes the first standalone utility-scale BESS deal for Siemens Bank, and the second time Siemens has supported Zenobē following the successful close of their EV fleet financing in 2022. With project finance debt for the project totaling GPB 235m, Blackhillock & Kilmarnock are the largest project finance facilities for BESS ever to be arranged in Europe. Furthermore, Zenobē’s ambitions for growth are supported by the banks’ provision of an additional uncommitted accordion facility.

In line with Siemens Bank’s commitment to sustainability, supporting the project’s debt financing as a Mandated Lead Arranger is expected to enable the prevention of 4.1 million tons of CO2 emissions over 15 years. Given its groundbreaking scale, this BESS transaction required deep sector expertise and detailed analysis of the complex revenue stack. Achieving financial close was an important step in demonstrating liquidity for such an asset class in the bank market, while at the same time underlining Siemens Bank’s ambitions to be a leading bank in the sector.

A graph showing CO2 availability over time with a fluctuating line.

Securing this first of its kind financing structure is another landmark for Zenobē and our mission to accelerate the grid’s uptake of renewable energy affordably and reliably. We really appreciate the continuing support of Siemens to our business’s growth and development and the two debt financing transactions for our fleet and, now, network infrastructure businesses. Thank you again for the support you have provided.

Nicholas Beatty, Co-founder and Director of Zenobē

The energy transition depends on cutting edge technological solutions such as BESS, and investing in them is a matter of urgency to support the ongoing build-out of renewables. SFS is therefore proud to support groundbreaking projects such as these, assisting Zenobē in achieving its ambition to invest GBP 750m in the UK battery storage market, accelerating the adoption of renewables and helping to pave the way to a net-zero future for the UK.