Israeli renewables developer Nofar Energy Ltd (TLV:NOFR) has tied up with real estate and energy storage investor Interland to build a joint battery storage portfolio in the UK, starting with a roughly 700-MWh project.
The duo will set up a joint venture (JV) to develop, build, finance and operate the projects, Nofar said on Wednesday. The Israel-based company will own a 75% stake in the new entity, while its partner will hold the remaining 25%.
The first project the partnership will undertake is set to create the UK’s largest battery energy storage facility. The GBP-214-million (USD 681.6m/EUR 604.9m) Cellarhead project is expected to bring annual revenues of roughly GBP 42 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of GBP 35.5 million.
The proposed battery will connect to the grid via a 300 MW-349 MW connection. Its construction is due to be launched in the first half of 2022 with completion and connection targeted by the second quarter of 2024.
Nofar and its partner said they are currently working to develop more battery projects "on a substantial scale".
"Nofar Energy continues to realize its expansion strategy by now entering into the battery energy storage field in the UK, which is characterized by significant growth and high yields," commented Nofar’s CEO Nadav Tene.
Last week, Nofar signed a deal to deploy 400 MWh of energy storage capacity in its home country together with Israel’s Mivne Real Estate. It is also developing a 300-MWh project in Israel that will use Tesla batteries.
(GBP 1.0 = USD 1.326/EUR 1.177)
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