Founder and CEO of Corre Energy, Keith McGrane | Image credit: LinkedIn
Netherlands-based Corre Energy, a company that develops, builds and operates grid-scale underground energy storage, announced on Wednesday that it has raised €10.88M as part of a share placement.
The Dutch company develops and operates Long Duration Energy Storage (LDES) projects and products, accelerating the transition to net-zero, as well as enhancing the security and flexibility of energy systems.
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Corre Energy, which was listed on Euronext Dublin in September, 2021, says it will use the funds to accelerate and expand its current development portfolio of renewable electricity storage projects across Northern Europe and beyond. This move comes after the EU’s announcement of its final REPowerEU Plan.
The REPowerEU Plan
The demand for renewable energy storage in Europe, and globally, is accelerating at a very fast pace. Economies, corporates and consumers also attempt to fulfil climate, energy self-sufficiency, and ESG objectives. REPowerEU Plan highlights the critical role of energy storage and green energy production across Northern Europe in order to hit decarbonisation targets and secure energy supplies.
CEO of Corre Energy, Keith McGrane, says, “We are ready to play our part. Our solutions can completely transform the use of renewables in electricity generation, resolving intermittency issues without the need for polluting fossil fuels. We want to enable organisations and economies to achieve their climate change and energy security objectives, and pave the way for a clean and efficient energy transition.”
Corre Energy is on track for its first project in H2 of 2023, and is expanding its portfolio of projects across Europe as well as identifying development opportunities in the US and beyond.
The company’s decision to accelerate and extend its project development portfolio reflects its first-mover advantage. It already has a pipeline of 11 EU designated projects across northern Europe. Corre Energy claims that it is well progressed in securing an offtake agreement on its flagship project in the Netherlands, where proposals for 10-15 year contracts have been received from a range of investment-grade partners.
Corre Energy’s collaboration agreements
Corre Energy has recently signed two collaboration agreements that will expedite the delivery of its existing development portfolio, while opening up new opportunities in existing and new markets.
These agreements include:
Geostock: Signed a 10-year collaboration agreement to facilitate and expedite end-to-end design, development, financing and operation of underground hydrogen-based energy storage projects in Europe and beyond.
Siemens Energy: Project and technology collaboration MOU signed to facilitate technology sharing. The collaboration, which will also feature a joint advocacy approach, will demonstrate the value and benefits of LDES in the form of underground compressed air storage to a wider stakeholder audience.
CEO Keith McGrane says, “The REPowerEU plan is a major leap forward for the energy storage sector and for Corre Energy in particular, given the EU’s overt recognition of the importance of electricity storage and that the Member States should consider electricity storage assets as being ‘in the overriding public interest and facilitate permitting for their deployment’. We see REPowerEU as an implicit endorsement of the company’s strategy to help future-proof energy systems in the EU.”
Corre Energy will further expand its portfolio with at least 8 projects operational by 2030 with 4 to 5 more in construction or development. “Our strategic partnerships with Geostock and Siemens will play a critical role in delivering these ambitious targets,” adds McGrane.
About Corre Energy
Founded in 2018, Corre Energy develops and operates LDES projects and products. It is led by CEO Keith McGrane. The company addresses the increasing balancing requirements of renewable power and provides cost-effective services to system operators in the form of storage and balancing services.
Currently, the company has two projects at a progressed stage of development – the first is a joint project in the Netherlands (ZW1), where the company has partnered with Infracapital (part of M&G Group). The second project is in Denmark, with Corre Energy currently owning a 100 per cent stake.
The company says both projects are expected to come on-stream in 2025 / 2026 and reach full profitability by 2030. These projects cost €300 to €500M each to construct and are expected to generate EBITDA of €80M each at maturity.
In addition to the two projects, the company also has a pipeline of additional EU designated projects across the Netherlands, Germany and Denmark. The company says “Our ambition is to develop and operate storage projects in other major markets, including the US, Middle East, and Southeast Asia.”
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