Capcora Advises Terra One on BESS Sale to Castleton Commodities International

Wedoany.com Report-Nov 13, Terra One Climate Solutions GmbH, a pioneer in grid scale battery energy storage systems (BESS) in Germany, has announced an agreement to sell a 310 MW portfolio of stand-alone battery storage project rights in Germany to Castleton Commodities International LLC (CCI), a global energy commodities merchant and infrastructure asset investor. Capcora supported the seller as exclusive M&A adviser in this transaction. This deal stands out as a landmark in Germany’s young BESS market and is among the first cross-border transactions in this emerging sector.

The portfolio consists of 310 MW of shovel-ready and advanced projects, strategically positioned to support Germany’s renewable targets by enhancing network stability and providing the flexibility required for a sustainable power grid. CCI will build, own and operate these assets via its subsidiary S4 Energy BV.

Large scale battery storage systems enable the continuous supply of renewable energies and are therefore a critical component of the energy transition. According to Fraunhofer ISE, Germany alone requires 178 GWh of storage capacity by 2040 to achieve the federal government's climate targets. Less than 2 GWh had been installed by the end of 2022.

Terra One directly supports these objectives, with a pipeline of over 400 projects totalling more than 80 GWh in capacity, affirming its aspiration to become a top three provider of flexible energy in Europe. It is constructing several BESS projects across Germany and is actively participating in the power market via its proprietary algorithmic trading platform.

Thomas Antonioli, Co-Founder and Chief Financial Officer at Terra One, said: “Our partnership with CCI, a well-established player in the energy commodities market, brings significant value to our stakeholders. This collaboration leverages CCI's extensive market experience and our innovative approach. We will use the proceeds for constructing several hundred megawatt-hours of our own BESS projects, which we will operate via our proprietary optimisation platform.”

Mohit Singh, Principal in CCI’s European Principal Investments team, added: “This transaction demonstrates our conviction in the sector and belief in the vital role that battery energy storage must play in supporting Germany’s decarbonisation goals.”

Henning Prigge, director at Capcora, concluded: “This partnership demonstrates the growing significance of cross-border collaboration in advancing Europe's BESS market.”

Terra One was advised by Baker McKenzie (legal) and EY (tax), with Capcora acting as sell side M&A adviser.