The company ECO STOR, in collaboration with Banco Santander and NORD/LB, has finalised the financing for the battery storage project in Förderstedt. The facility, planned with a capacity of 300 MW and a storage capacity of 718 MWh, is scheduled to be fully operational in 2027. This marks the largest battery storage project realised and financed in Germany to date, surpassing the current largest storage facility in Bollingstedt, also built by ECO STOR, by a factor of three.
This undertaking is designed to provide the German electricity system with additional flexibility on an industrial scale. It will facilitate the integration of renewable energies, contribute to the stabilisation of electricity grids, and increase overall security of supply in the long term. The financing is accompanied by a recently announced long-term Flexibility Tolling agreement with Next Kraftwerke, a leading operator of virtual power plants in Europe. This agreement establishes a long-term commercial framework for the project and allows for the optimisation of the battery storage facility across diverse energy and ancillary services markets.
Strengthening grid stability through innovative structures
The innovative structure of the project combines planning certainty regarding projected revenues with operational flexibility, reflecting the increasing maturity of the market for large-scale battery storage. As the energy transition progresses, the need for such storage systems continuously intensifies. ECO STOR's objective is to make a significant contribution to reducing the existing storage gap and building a future-proof energy infrastructure in Germany with the Förderstedt project and other planned ventures.
Bart White, Global Head of Energy Structure Finance at Santander CIB, commented on the project's importance, stating that battery storage systems are gaining increasing relevance for the transformation of energy markets. He emphasised his institution's role as a leading financier of projects in renewable energies and sustainable infrastructure in supporting initiatives like Förderstedt to create a more flexible and reliable energy system.
Florian Hock, Senior Director at NORD/LB, stressed that the expansion of the energy transition in Germany and Europe largely depends on large-scale battery storage projects. These are crucial for strengthening grid flexibility and energy security. NORD/LB is committed to providing the necessary capital and financial expertise to support the expansion of this technology and accelerate the net-zero emissions target in the region.
Market signal and infrastructure contribution
Jörn Rohland, CFO of ECO STOR, interpreted the successful financing as a strong signal to the market. He highlighted that the realisation of such a large-scale project, especially in an evolving regulatory environment, represents a remarkable achievement and underscores the maturity of the storage sector and the determination of all parties involved. Projects like Förderstedt, he stated, create more than just additional storage capacity; they provide critical infrastructure that enhances grid stability and efficiently integrates renewable energies into the energy system.
The fact that this is made possible through private sector investment and commercial financing, according to Rohland, demonstrates the market's growing ability to provide essential infrastructure for the energy transition without public subsidies. Legally, the transaction was advised by Clifford Chance for the lenders and Hogan Lovells for ECO STOR.
