Nord/LB has agreed to provide a £45 million financing package for a 240MWh battery energy storage system (BESS) being developed by SAE at its Uskmouth Sustainable Energy Park in Newport, Wales, the companies said on Wednesday.
The Afon Wysg 1 (AW1) project marks the first of four planned BESS installations at the former coal-fired power station site, which SAE is repurposing into one of the UK’s largest clean energy hubs. Construction is already under way, with operations expected to begin in 2027.
SAE, which owns the land, grid connection, and transport infrastructure at Uskmouth, said the site offers strategic advantages in terms of planning, logistics, and long-term operations.
“This project is a shining example of what is possible as part of the renewable energy transition,” said Florian Hock, senior director at Nord/LB. “We’re thrilled to support SAE in transforming it into one of the UK’s largest BESS sites, which will not only help the UK to realise its net-zero ambitions, but also ensure vital energy security and grid stability going forward.”
SAE chief executive Graham Reid described the financing agreement as a strong match for the company’s clean energy strategy. “To have one of the leading banks in the energy transition space is the perfect fit for our strategy and our vision,” he said. “Our focus now is in the safe and successful construction of the AW1 project and its many years of vital operation.”
SAE said the broader Uskmouth site has the potential to host over 1GW of battery storage capacity as part of its long-term development plans.
Legal counsel on the transaction was provided by TLT for Nord/LB and Burges Salmon for SAE.
