Corre Energy to co-locate 320 MW battery next to Dutch compressed air project

Long-duration energy storage developer Corre Energy announced plans to develop a 320 MW / 640 MWh battery next to its upcoming Compressed Air Energy Storage (CAES) project at Zuidwending in the Netherlands.

The project will be one of Europe's largest battery storage facilities when complete, and Corre Energy announced it had formed a 50:50 joint venture with SemperPower, the Dutch market leader in developing, financing and operating battery energy storage systems (BESS), to facilitate deliver.

SemperPower will provide battery infrastructure sourcing, development and operational expertise to the project. The company has significant experience in battery development, with three existing projects operating in the Netherlands and a pipeline backed by its owner Return Energy, a major renewable energy investment platform.

The battery will share the same grid infrastructure as the CAES facility, Corre Energy said in a release. The partners are targeting financial closure by late 2025, with commercial operations expected to begin in 2026.

The JV, which is targeting fixed 10-12 year offtake agreements for the project, estimates the battery will help remove over 70,000 tonnes of CO2 a year, while complementing Corre Energy's CAES plans and delivering the company an additional, near-term revenue stream. The JV will initially invest €7 million; although Corre Energy's share would be represented by capital it has already invested in the project so far. Total capital expenditure during construction and installation is estimated at ~€300 million.

Keith McGrane, CEO of Corre Energy, commented on the deal: "Looking ahead, we believe batteries could play a major role in our current and future projects. It's a model we can replicate and scale because the economics stack up, it can accelerate projects and the technology is highly complementary. And more widely this all contributes to a faster, greener, fairer and more stable energy system for society."

Dennis Schiricke, CEO of SemperPower, added: "As creators of capacity, our mission is to make electrical storage capacity available to the market. Through this joint venture, we aim to support regional stakeholders by accelerating the energy transition, a goal achievable only through collective efforts.