Quinbrook Closes £120m Milestone Project Financing for Five Synchronous Condenser Projects
April 25 2024 - 1:00AM
Business Wire
Part of the largest portfolio of privately
owned synchronous condensers in UK
Quinbrook Infrastructure Partners (“Quinbrook”), a specialist
global investment manager focused exclusively on the infrastructure
needed for the energy transition, today announced it has closed
£120 million in new debt financing for a portfolio of five
synchronous condenser projects. This is the first portfolio
financing of synchronous condensers that were awarded contracts in
Phases I and II of National Grid’s Stability Pathfinder
Programme.
“Grid stability is a critical necessity for achieving a secure
transition to a decarbonised power system and synchronous
condensers are an innovative solution to address fundamental system
needs,” said Keith Gains, Managing Director and UK regional lead
for Quinbrook. “Quinbrook has assembled the largest privately owned
portfolio of synchronous condensers located across the UK that will
allow National Grid to control system frequency and maintain grid
stability as more renewables capacity is added to the UK power
system.”
The financing was led by a consortium of Siemens Financial
Services through Siemens Bank, NatWest and NORD/LB.
Included in this portfolio financing is Quinbrook’s first
synchronous condenser, located at Rassau in Wales. This first
project was awarded a contract by National Grid in Phase I and has
exceeded all operational targets since completion in 2022. Also
included is Quinbrook’s “Scottish Portfolio” of four synchronous
condensers, which were awarded contracts in Phase II and are
located near Gretna, Neilston, Rothienorman and Thurso. The
Scottish Portfolio broke ground in 2023 and is expected to complete
all construction works and commence operations by the end of this
year.
The projects, developed in partnership with Welsh Power, are
supported by availability based fully inflation linked revenues
under contract with National Grid for a period of up to 10
years.
Gains added, “We are very pleased with the successful close of
this financing and are grateful for the strong support from both
existing and new financing partners who recognise the real impact
these investments provide in supporting the UK energy
transition.”
Advisors to Quinbrook were Norton Rose Fulbright (legal),
Fichtner (technical), Lockton (insurance) and BDO (model
audit).
About Quinbrook
Quinbrook Infrastructure Partners (http://www.quinbrook.com) is
a specialist investment manager focused exclusively on the
infrastructure needed to drive the energy transition in the UK, US,
and Australia. Quinbrook is led and managed by a senior team of
power industry professionals who have collectively invested c.USD
8.2 billion equity in energy infrastructure assets since the early
1990s, representing a total enterprise value of c.USD 28.7 billion
or 19.5 GW of power supply capacity. Quinbrook has completed a
diverse range of direct investments in both utility and distributed
scale onshore wind and solar power, battery storage, reserve
peaking capacity, biomass, fugitive methane recovery, hydro and
flexible energy management solutions in the UK, US, and Australia.
Quinbrook is currently developing and constructing some of the
largest renewables and storage infrastructure projects in the UK,
US, and Australia.
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