Catalyst acquires Leeds site for new £300m UK battery storage strategy
Catalyst Energy Storage Platform (CESP), headed by John Parsons, has acquired the leasehold interest in a brownfield site at the former Skelton Grange power station in Leeds, from Referent, a renewable energy developer. The site is part of a regional hub for renewable energy and is adjacent to a 19.5-acre waste-to-energy facility, which is currently under construction.
Planning permission was granted last year for a 100MW battery storage facility. The construction tendering process is being managed by CESP‘s engineering adviser, Fitchner, with the intention that the site will be operational in the fourth quarter of 2022.
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Hide AdThe site is one of a series that will be acquired by Catalyst as part of a £300m diversified UK battery storage facility strategy. Skelton follows a joint venture acquisition last year with Dowling in Southampton. The 50MW facility is expected to be fully operational in February 2022. Catalyst is now in talks with investors to jointly fund the expansion of the battery storage platform.
Catalyst was advised by Freeths and Fitchner on the Yorkshire transaction.
Battery storage, or battery energy storage systems, enable energy from renewables, like solar and wind, to be stored and then released when customers need power most. It is thought that battery storage technologies could accelerate the replacement of fossil fuels with renewable energy and have a key part to play in the UK government’s policy of ensuring homes and businesses can be powered by green energy by 2030
Kean Hird, partner of Catalyst Capital, said: “John and his team have been researching this sector for some time and we believe there is a compelling opportunity to deliver a portfolio of UK battery storage facilities. This portfolio will give our investors the opportunity to invest into a scalable market with high ESG credentials in the renewables sector. Although the sector is still in evolution, it is quickly gaining institutional status, while delivering very healthy cash-on-cash returns in the interim”.
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Hide AdRenewable energy and batteries have a direct correlation to the real estate sector, as institutional investors, tenants, banks and the real estate industry demand improved greener ratings from their landlords. Catalyst believes that investing in the sector is key to realising the global net carbon zero target. This strategy is vital to Catalyst’s GRESB and other ESG accreditations, while simultaneously delivering accretive and sustainable investor returns.