Energy storage group Corre Energy has inked a deal that will see energy it stores at a major facility to be built in the Netherlands being bought by Dutch power provider Eneco.
he 15-year offtake agreement, with extension rights, is for the entire storage capacity at the Zuidwending Compressed Air Energy Storage (CAES) facility that will be built by Corre Energy in the Netherlands.
Corre Energy has exclusive rights to build a CAES facility using salt caverns at the site in the province of Groningen, in conjunction with its cavern development partner.
The facility will be able to provide up to 320MW of power, with a maximum storage discharge duration of approximately 3.5 days. It’s expected to be operational by around the end of 2026. The Dutch site has been deemed a European Project of Common Interest by the EU and has already received more than €4m in grants.
Corre Energy, whose chief executive is Kevin McGrane, has teamed up with investment partner Infracapital to help deliver the project.
Corre Energy listed on the Euronext Growth market in Dublin in 2021. It raised €12m from that initial public offering. Earlier this year, it raised a further €11m from investors via a share placement.
Shares in the company have more than doubled this year, having surged as Russia’s invasion of Ukraine saw energy prices soar and fears raised about security of supply across Europe.
The group now has a market capitalisation of €191m.
Corre Energy is developing about a dozen large-scale hydrogen-based energy storage projects across northern Europe. It said these facilities will address grid-level imbalances associated with increasing volumes of renewable energy generation.
Under the terms of the arrangement with Eneco, Corre Energy will construct, operate and maintain the Zuidwending facility. Eneco will optimise the entire output of the storage site on behalf of Corre Energy. Eneco will provide market access services, enabling Corre Energy to benefit from revenue linked to the high flexibility value of the asset, while also guaranteeing a base level of income.
“Zuidwending will be hydrogen fuel enabled from day one and we expect the maturing of the hydrogen market to allow the facility to operate entirely on surplus renewable energy and green hydrogen, making an increasingly positive environmental impact,” said Mr McGrane.
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