Zenobē - Energy Focus March 2024

A New Era for Energy ZENOBĒ

ZENOBĒ

A New Era for Energy

PRODUCTION: David Hill

Balancing the grid with battery storage solutions, allowing for renewable energy to be utilised when the sun goes down, when the wind doesn’t blow, Zenobē is bringing together engineering, finance, and innovation to build the energy system of the future. Wasting green energy is no longer an option, and Zenobē is making moves to eliminate the practice across Scotland for good.

INDUSTRY FOCUS: STORAGE

//Often described as ‘long-term’ or ‘far off’ or ‘for the next generation’, the idea of net-zero is intimidating. In the UK, the goal is for all greenhouse gas emissions to be equal to the emissions removed from the atmosphere by 2050. The energy sector is a big player here, responsible for significant emissions through the utilisation of fossil fuels. Making the switch is daunting. Embracing renewable energy, developing new technologies, harnessing digital capability, and innovating solutions – while vital – costs money.

But some are investing. Some are committing, and some are taking the leap, aiming for a brighter and more sustainable future. International power, technology, and finance experts, Zenobē, believes that a net-zero society is within reach.

Founded in 2017, the company has become the leading battery storage operator in the UK and has grown its

presence across Australia, New Zealand, and Benelux. “We’ve raised c.£1.8 billion in debt and equity funding. We have c.730MW of grid-connected batteries live or under contract and c.1,000 electric vehicles with strong ambitions for the future,” the company states.

Zenobē is also the number one owner and operator of e-buses in Australia and New Zealand, and are quickly expanding into light commercial vehicles and truck, while powering 25% of the UK e-bus market.

Clearly, Zenobē views the energy transition and decarbonisation as an opportunity and not a hurdle. This is a company proving that there are returns to be had when making clean power accessible.

PROJECTS WITH PURPOSE

At the start of 2023, the company gained £235 million project finance debt from a consortium of banks to begin its ambitious plans in Scotland,

starting at Blackhillock. The 300 MW site is home to the first battery storage facility in the world that can provide Stability Services using a transmissionconnected battery. The first 200 MW will go live this year with the next 100 MW due in 2026. Bringing the finance and engineering capability together to deliver such a project is what separates Zenobē from others in the industry.

“Securing this first of its kind financing structure is another landmark for Zenobē and our mission to accelerate the grid’s uptake of renewable energy affordably and reliably,” said co-founder Nicholas Beatty. “This follows the successful arrangement of a private placement to debt finance our existing and pipeline fleet business last year. As lead advisor, NatWest has been instrumental in developing a debt facility that enables us to deliver grid-scale battery storage projects in Scotland and presents a significant growth opportunity for

our business to deliver more of these projects across the UK and elsewhere.”

Recently, other major battery storage projects have been initiated in Scotland, as the company looks to support the National Grid with its uptake of renewable power. The country has committed to netzero by 2045 and is keen to make the most of the abundant natural resources available, including wind, solar, and tidal generation.

WISHAW

At the end of 2023, Zenobē opened a new site in Wishaw, North Lanarkshire, with a transformational 50 MW battery storage system that has the capacity to store enough wind power for 130,000 households for two hours. This reduces waste in the renewable energy industry allowing consumers to save while driving overall efficiency.

When the network has limited capacity, and no storage solution, windfarms can turn off turbines – curtailment – wasting large amounts of green power. In 2023, the UK wasted more than 2200 GWh which could have been used to power all homes in

Glasgow and Edinburgh for a full year.

Clearly, battery storage is a critical component in the renewable energy rollout. This is why Zenobē has committed £750 million to create pioneering projects across Scotland, reinventing the way the

INDUSTRY FOCUS: STORAGE

grid interacts with its new wind partners, spinning away off the coast and across the countryside.

“The Wishaw site inauguration represents a significant milestone for Zenobē and Scotland’s renewable energy ambitions as we seek to double Scotland’s storage power capacity,” said co-founder, James Basden.

“Battery storage is essential if the UK is to improve its energy security and bring down costs for consumers. By capturing and storing excess energy with sites like Wishaw, we can power homes, buses and trucks with energy that would otherwise have been wasted. Our recent successful capital raise provides the funding and Wishaw going live is the first step in this

journey. We are pleased to work with our partners Fluence, Centrica, H&MV and Santander UK to deliver this project that will enable even more clean, renewable energy to flow safely and reliably through the electricity network to power homes and businesses in the wider Glasgow area and beyond.”

In January 2024, two significant announcements came when the company finalised a project finance debt structure to support Scottish rollout before beginning construction of the exciting Kilmarnock South battery project.

The new debt backing of £147 million is structured by NatWest and is supported by a range of infrastructure banks. It comes following success at

the company’s 300 MW Blackhillock site near Inverness and is an upscaling after the project was upsized with larger energy capacity. Importantly, sites like Kilmarnock South and Wishaw will pass on estimated savings of £41 million over the next 15 years, by reducing wastage and stopping wind farm curtailment.

Kilmarnock South is particularly exciting for the company because of its scale. The project will stop 3.4 million tonnes of CO2 entering the atmosphere and has a 300 MW capacity that can store renewable energy, brining Scotland closer to energy autonomy. Again, the project is designed to reduce wasted green energy.

“Reaching this significant milestone demonstrates Zenobē’s commitment

THE PERFECT EPC PARTNER IN COMPLEX ENERGY SOLUTION PROJECTS

H&MV Engineering, a multi-disciplinary engineering firm with offices across Europe and Asia, boasts substantial expertise across engineering and design, high voltage systems, independent connections provision (ICP), infrastructure and asset management, and training and development.

H&MV, established in 1997, was onboarded in Zenobe’s recent project to connect a new battery energy storage system (BESS) to the transmission system in Scotland. The BESS, in Keith, Moray, will provide stability and security of supply to the region between Aberdeen and Inverness, as Scotland looks to further its renewable energy ambitions. A 300MW/600MW project, and the first to provide the full suite of active and reactive power services, this development will be the largest transmission connected battery in Europe when commissioned.

“The client required a competent contractor with both ICP and high voltage experience to deliver electrical and civil design, civil construction, electrical installation, and commissioning works in order to complete connection,” says UK Managing Director, Nigel Taylor.

H&MV, recognised for being adaptable and flexible, was appointed as the Principal Designer and Contractor under CDM 2015 Regulations, taking site and project management responsibilities.

“Our scope included design, procurement, supply, installation and commissioning of the 275 and 33 kV electrical network required to connect the BESS to the transmission network. Commissioning and testing were in compliance with, and approved by, SSE. H&MV completed all associated earthing as well as protection schemes, interlocking, controls, and metering systems,” details Taylor.

H&MV Engineering worked hand-in-hand with Zenobe, coordinating delivery of the BESS to site, including a number of heavy infrastructure packages such as the Power Conversion System, 33 kV transformers, containerised batteries, HVAC and fire suppression system, while liaising with landowners, the planning office, and local community.

“The award of this ground-breaking project reflects the confidence that Zenobe has in H&MV Engineering’s ability to deliver critical and complex projects,” said Taylor.

Contact H&MV Engineering today to discuss your project requirements. www.hmvengineering.com | +353 61 357 496 | H&MV Engineering

EXPERT DESIGN, SEAMLESS CONSTRUCTION: YOUR TURNKEY ELECTRICITY PARTNER

to stopping the waste of wind power by doubling Scotland’s battery storage capacity,” said Basden at the start of construction. “Kilmarnock South will enhance the country’s position as a

// REACHING THIS SIGNIFICANT MILESTONE DEMONSTRATES ZENOBĒ’S COMMITMENT TO STOPPING THE WASTE OF WIND POWER BY DOUBLING SCOTLAND’S BATTERY STORAGE CAPACITY

leader in delivering energy that is cost-effective, clean and efficient. This is an important moment as we bolster the UK’s energy infrastructure and help to ensure that every household feels the benefits of sustainable, affordable electricity.”

Kilmarnock South performs a similar function to a power station for the local substation but without the waste, and without the greenhouse gas emissions. In 2025, the project will come online and balance the grid using green energy from wind farms including Viking and Beatrice.

Alongside these significant projects, Zenobē is also busy investing fleet charging solutions for bus operations in Oxford, investing in relevant fleet management software in South Africa, supporting development and rollout of electric concrete mix

www.hmvengineering.com

vehicles in Birmingham, and finding new uses for second-life batteries.

This is a business not looking at the distant future, content with being all voice and no action. Zenobē is doing things now – taking action, utilising money, and building commitments that make net-zero a reality. The team is motivated and, thankfully, the size of the problem is only matched by the level of ambition and optimism. Encouraging more to follow is the next step for policy makers and regulators.

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