Energy company Corre Energy and Eneco have signed a deal for the company's first Compressed Air Energy Storage (CAES) project in Germany.
The deal will see Eneco buy a 50% interest in the project, at economics to be agreed, which will include both development capital and construction equity.
The transaction also means Eneco will secure the entire storage capacity under a long-term offtake agreement for the first phase project at Ahaus in Germany.
Corre Energy concentrates on the development, construction and future operation of grid-scale underground renewable energy storage facilities, as well as the production and sale of green hydrogen.
It has a pipeline of 11 EU designated projects across northern Europe and its established funding partners. and is also actively identifying development opportunities in the US and beyond.
Today's deal is Eneco's second agreement with Corre Energy after its 15-year offtake agreement for the ZW1 project in the Netherlands, announced in December 2022.
The co-development, financing and operating of the Ahaus project will be undertaken by LichtBlick, Eneco's German subsidiary and one of Germany’s largest green energy suppliers, alongside Corre Energy’s subsidiary, Corre Energy Germany GmbH.
Keith McGrane, CEO of Corre Energy, said today's landmark agreement combines offtake, development and co-investment arrangements to propel its first German project while showcasing the latest demand for our CAES solution.
"To sign a second deal with Eneco just 12 months on from our first agreement in the Netherlands is a testament to the relationship we've forged," Kevin McGrane said.
"By locking in long-term investment partnerships such as in Germany, we are accelerating the commercial development of our portfolio underpinned by long-term offtake arrangements. These arrangements are repeatable across the portfolio and for each project can capture circa €1 billion of net revenue over the duration of a 15-year offtake agreement," he added.
Kees-Jan Rameau, COO Integrated Energy of Eneco, said that energy storage is essential for the sustainable energy system of the future.
"It helps us use clean power even when there's no wind or sun available and we can also help ease congestion on the power grid," he said.
"We see a bright future for these storage solutions and this second project with Corre Energy helps us get closer to the goals in our One Planet Plan: to be climate neutral in 2035, together with our customers," he added.
