CMS advises Penso Power on strategic investment from BW Group

International law firm CMS has advised Penso Power, the originator and developer of Europe’s largest operational battery storage scheme (the 100MW Minety project in Wiltshire), on a joint venture agreement with BW Group, the global maritime group with interests in shipping, infrastructure, energy and digital connectivity. 

The agreement will see BW Group commit capital to fully fund the build-out of Penso Power’s pipeline of more than 3GWh of large-scale battery storage projects in the UK over the next 3-5 years, including projects up to 350MW in connection capacity.

Under the agreement, Penso Power and BW Group will become joint shareholders at a project level. BW Group will also invest directly into Penso Power to become a significant shareholder with Erik Strømsø, Managing Director of BW Renewables and a member of BW Group’s Executive Committee, joining Penso Power’s board of directors.

Alasdair Steele, CMS Corporate partner, comments: “We are very pleased to advise Penso Power on its joint venture agreement with BW Group. This partnership has exciting implications for the UK’s energy sector, as developments in the battery storage market will play a vital role in helping the country to achieve its net zero ambitions. BW Group’s investment will support the expansion of Penso Power’s UK pipeline and will enable it to consider storage and renewable generation opportunities in other markets.”

Richard Thwaites, Chief Executive of Penso Power, comments: “We are delighted to have forged this important partnership with BW Group. We consider energy storage to be a key enabler of the energy transition and we view the deal – considerably larger than anything else seen in the UK to date – as transformational for ourselves and indeed the UK market. I’d like to thank the CMS team for their support throughout this project – at every stage they demonstrated their deep sector understanding and commercial acumen.” 

The CMS team was led by Alasdair Steele and included Louise Dalton and Freddie May (both Energy & Climate Change); and Will Holder (Corporate).