InfraBalance New Energy has kicked off an equity raise to support the construction of a consented 75 MW / 150 MWh battery storage project in the north of England.

The developer is aiming to raise GBP 14m in equity from a co-investor for its Lancaster Power project, which is located in Lancaster, Manchester and which is scheduled to enter operation in 2026, it is understood.

The group is being advised on the process by Hannam & Partners, which began approaching the market in late April and is aiming to conclude a deal by the end of Q2.

IBNE is understood to be open to three different transaction parameters, including: taking a GBP 14m investment for a stake in Lancaster Power at the project level; raising GBP 14m at the IBNE topco level, with proceeds then trickling down for use at the SPV level; or raising GBP 10m at Lancaster Power asset level and the remaining GBP 4m at topco level.

The latter options would give the incoming investor access to IBNE’s circa 2 GW BESS pipeline in the UK, while it has also with partners identified a potential acquisition pipeline of 1.2 GW-plus of BESS and solar.

Lancaster Power has an estimated capex of GBP 35m, of which around GBP 25m is anticipated to be made up of project finance. IBNE is understood to have lined up staple finance for the transaction from a UK lender.

Statkraft is set to provide a route-to-market for the Lancaster project, while BESS technology and equipment is to be provided by Trina BESS.

IBNE secured a 15-year, T4 capacity market contract for the scheme in 2022.

Sparta Capital holds a 45% stake in IBNE, while board members hold a further 33%.

IBNE’s shareholders launched a topco level equity raise supported by PwC in 2023, although that deal never closed.

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