CMS advises Fidra Energy on UK's largest battery energy storage project, at Thorpe Marsh

CMS has advised Fidra Energy, a leading European battery energy storage system (BESS) platform headquartered in Edinburgh, UK, on the UK’s largest BESS project, at Thorpe Marsh in South Yorkshire. The project reached financial close on Monday 8 September and is due to start construction immediately.

The project is expected to be operational starting in mid-2027 and will be funded largely through new project-finance loan facilities of £594m from a club of international lenders.¹ Fidra also secured up to £445m of new equity investment from EIG and the National Wealth Fund (the NWF), part of which will be used to fund the equity investment in the Thorpe Marsh project.

At 1.4GW / 3.1GWh, Thorpe Marsh is the largest standalone BESS project financed globally and the largest BESS financing in Europe. It represents a step change in the scale of UK BESS projects. Once completed, Thorpe Marsh will be three times larger than any other BESS project currently in operation or under construction in the UK and will be capable of exporting over 2 million MWh annually, enough to supply about 785,000 homes each year.

CMS has worked with Fidra on the project since early 2024, advising them as borrower and project owner on all aspects of the debt financing, including loan and letter of credit facilities and hedging arrangements. CMS also advised Fidra on all of the construction and revenue aspects, including drafting and negotiating contracts with Sungrow, H&MV and Jones Bros. as key suppliers to the project, and on an innovative package of offtake contracts with EDF, Octopus Energy and Statkraft. White & Case advised on the equity arrangements.

Phil Duffield, Energy & Climate Change Partner at CMS UK, commented: “The Thorpe Marsh project is a landmark for the UK’s energy transition, setting a new benchmark for battery storage capacity and innovation. Our team’s deep sector knowledge and collaborative approach were instrumental in helping Fidra Energy and its partners to navigate the legal complexities of this deal. We’re proud of the role we’ve played in helping to successfully deliver a transaction of such national significance that will help underpin the UK’s transition to a low-carbon future.”

Chris Elder, Fidra Energy’s Chief Executive Officer, said: “Achieving financial close for Thorpe Marsh represents a massive milestone for Fidra Energy and a major leap forward for the UK in meeting its clean power 2030 mission.  

“Battery energy storage has a crucial role to play in the energy transition, storing renewable energy when it is abundant, and releasing it when generation from sources such as wind and solar is low. This displaces electricity generated by fossil fuels that would typically be used when generation from renewables is low. We’re proud to be at the forefront of delivering clean, reliable power and supporting the government’s ambitions for a sustainable energy future.

“Thorpe Marsh is one of the most exciting infrastructure projects in the world and a testament to the outstanding team at Fidra and others who have supported us on this journey”.

Energy Secretary Ed Miliband said: “It’s fantastic to see the National Wealth Fund breathing new life into a former coal site — turning it into a cutting-edge battery hub that will power thousands of British homes and businesses with clean energy from wind and solar. Every battery we build boosts Britain's energy security, reduces our exposure to fossil fuel price shocks and drives us towards clean power by 2030 - all part of our Plan for Change.”

The CMS team was supervised by Phil Duffield, who led on all aspects relating to construction contracts. CMS Banking & Finance Partner Katie Duffield led on financing aspects and CMS Energy & Climate Change Partner Louise Dalton led on revenue aspects. The core CMS team also included Tom Ballard, Hannah Gibson, George Bryant, Will Gower, Yasmin Kasri, Joel Padi, Sabrina Polito, Valentina Olto, Veral Chandiramani, Edward Longden and Kate Merrill (Energy & Infrastructure); Oliver Brown, Hannalie Gillott, Christopher Thorpe, Alfie Kerr and Mehdi Lilani (Finance); Kirsty Templar and Mamie Hamshere (Capital Markets); Robert Garden and Emily Lock (Planning); and Michael Carroll, Adam Fenby-Betts and Anna Ghataure (Corporate).

CMS’s role on this deal further emphasises the firm’s market-leading energy storage practice. CMS is widely recognised for its influential role in the sector, advising on some of the highest value, highest profile and first-of-a-kind transactions both in the UK and across Europe. CMS was named Law Firm of the Year at the Energy Storage Awards 2024 and subsequently named Legal Adviser of the Year at the Energy Storage Investment Awards 2024. 

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^{1 The club of banks comprises ABN Amro, China Minsheng, CIBC, Deutsche Bank, Investec Bank, MUFG, Natwest, Nord LB, Santander, Siemens Bank, SMBC, Societe Generale and Standard Chartered Bank.}