The fund will look to develop a 500MW portfolio of six large-scale projects. Image: Getty Images.

Specialist investment firm Adaptogen Capital has confirmed that it has raised £207 million for its Adaptogen Battery Storage LP fund.

Adaptogen Battery Storage LP fund is an energy infrastructure fund focused on developing, constructing and operating grid-scale and distributed storage assets in the UK and Ireland.

The firm stated that the fund is “dedicated to facilitating the net zero transition through investment into battery storage assets and providing essential balancing and load shifting services to the high renewable penetration grid of the future.”

The battery storage fund intends to develop a 500MW portfolio of six large-scale projects at key nodal points on the energy grid, Adaptogen confirmed.

The fund, which achieved its financial raise against a target of £175 million, received commitments from 50 investors and will support the firm’s growing reach into the battery energy storage industry. The exceeding of the fund’s initial target could also represent a growing appetite for battery storage in the UK to complement its vast renewable generation potential.

Adaptogen has developed a pipeline of projects for the fund’s investment over the next three years, including two initial assets located near Liverpool, which have broken ground and will begin construction this summer.

“Battery energy storage is an essential part of the UK’s energy transition to net zero. We cannot fully decarbonise our economy without massive-scale investment into storage assets to facilitate more efficient deployment of renewable energy as we move away from fossil fuels,” said James Mills, managing director of Adaptogen Capital.

“Adaptogen estimates that the UK needs to invest up to £11 billion in storage assets by 2035 to deliver on its energy transition ambitions. Through the Adaptogen Battery Storage LP fund, we give our investors the opportunity to benefit from that infrastructure opportunity by investing in high quality, attractively valued, private assets on the energy grid. 

“As specialist battery storage investors, our founders were some of the first movers into this space and we believe Adaptogen Capital’s highly technical and specialist approach can add significant value to our investors.”