ECO STOR, Banco Santander, and NORD/LB have secured the financing of the 300 MW/718 MWh battery storage facility in Förderstedt, Germany.

The plant is the largest battery storage project realised and financed in Germany to date and will commence full operation in 2027.

The Förderstedt large scale battery storage system will have a capacity of 300 MW and a storage capacity of 718 MWh. This surpasses Germany’s current largest battery storage system in Bollingstedt, also built by ECO STOR and operational for a year, by approximately three times. The project will provide the German electricity system with additional flexibility on an industrial scale. The storage system will facilitate the integration of renewable energies, contribute to grid stabilisation, and sustainably strengthen security of supply.

The financing of the plant is accompanied by a recently announced long-term flexibility tolling agreement with Next Kraftwerke, one of the leading virtual power plant operators in Europe. This agreement establishes a long-term commercial framework for the project and enables the optimisation of the battery storage across various energy and balancing energy markets. The innovative structure combines predictable revenue with operational flexibility and reflects the increasing maturity of the large scale battery storage market.

As the energy transition progresses, the demand for large scale battery storage systems is constantly increasing. With the project in Förderstedt and other initiatives, ECO STOR aims to make a significant contribution to closing the existing storage gap and building a future-proof energy infrastructure in Germany.

Bart White, Global Head of Energy Structure Finance at Santander CIB, commented: “As one of the world’s leading financiers of renewable energy and sustainable infrastructure projects, we are delighted to support the financing of the Förderstedt battery storage project. Battery storage systems are becoming increasingly important for the transformation of energy markets. By supporting innovative projects like Förderstedt, we are contributing to the development of a more flexible, reliable, and sustainable energy system.”

Florian Hock, Senior Director at NORD/LB, explained: “We are delighted to support ECO STOR by financing the project in Förderstedt. The expansion of the energy transition in Germany and Europe will depend significantly on large scale battery storage projects. They are crucial for strengthening grid flexibility and energy security. As a bank, we are committed to providing the necessary capital and financial expertise to support the expansion of this technology and accelerate the path to net-zero emissions in Saxony-Anhalt, Germany, and Europe.”