Corre Energy has formed a joint venture with Dutch company SemperPower to deliver one of Europe's biggest battery storage facilities at its Zuidwending site (ZW1) in the Netherlands.
SemperPower, which is owned by Return Energy - a major renewable energy investment platform - will partner with Corre Energy to deliver the 320MW 2-hour battery project, totalling 640MWhrs.
The 50/50 joint venture will initially invest €7m, with Corre Energy's share represented by capital already invested in the project to date.
Zuidwending is 20km from the nearest coast, close to offshore wind and solar farms, and at the centre of the Dutch transitioning energy system.
Both the battery and CAES projects come at a time when state-owned electricity grid operator, TenneT, states that investment in Dutch electricity infrastructure will need to double over the next decade.
The new project will act as a critical grid balancing solution for the Netherlands and meet increasing supplies of intermittent renewable energy while delivering a significant, positive impact on society and the environment.
The two companies estimated that the project will remove over 70,000 tonnes of carbon dioxide per year.
It also complements Corre Energy's Compressed Air Energy Storage (CAES) plans and delivers a near-term, additional revenue stream to the company.
SemperPower has significant experience in battery development, with three existing projects operating in the Netherlands and a further pipeline backed by Return Energy.
Keith McGrane, CEO of Corre Energy, said the new partnership with Semper Power and Return Energy speeds up and broadens the company's income profile for Zuidwending while delivering critical storage to meet future energy consumption needs.
"This crystallisation event secures immediate investment to fund the venture followed by further payment at FID and represents a model to realise nearer term cashflows to supplement our CAES development," he said.
"We look forward to working with SemperPower who bring expertise in battery and infrastructure as well as project finance and offtake delivery," he added.
Mr McGrane said that Corre believes batteries could play a major role in its 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," he added.
Dennis Schiricke, CEO of SemperPower, said that as creators of capacity, its 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," he said.
"This project stands to bring numerous benefits to the local region, including enhanced energy security, job creation, and a boost to the local economy. By working together, we can inspire collective action and tackle sustainability challenges head-on," he added.
