Listed fund Gresham House Energy Storage Fund (GRID) has completed a third-party equity funding of £8.6 million to finance the augmentation of the combined 50MW Glassenbury projects.
The equity funding will increase the capacity of the 40MW Glassenbury A and 10MW Glassenbury B battery energy storage systems (BESS) from 38MWh to 110MWh, a 2.2-hour duration.
Planning permission has been granted for the projects located in Harley, Kent, and construction and battery supply agreements are due to be signed shortly. GRID expects construction to begin in early July and be completed in December 2025.
Once completed, Glassenbury’s augmentation is expected to increase GRID’s share of the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) by about 22% over the project’s life.
Funds for the augmentation were raised by the issuance of new shares in Glassenbury, which previously was 100% indirectly owned by GRID. Now, UAB E Energy Invest (EEEI) will own 35%, with GRID retaining the remaining share.
Ben Guest, fund manager of GRID and managing director of Gresham House Energy Transition described equity injections at a project level as “an effective way to enable augmentation of projects and create significant value”.
EEEI is the investment vehicle of the Strioga Family Foundation, evolved out of E Energija, that “finances and fosters” sustainable renewables growth.
GRID’s chair, John Leggate, said: “This transaction is believed to be the first augmentation-driven equity injection at project level for a listed BESS fund. The funds from this transaction will be used to augment one of our shortest duration assets to over two hours, substantially increasing the value of Glassenbury.
“This unlocks an innovative path to raising equity funds at a project level for GB BESS and supports GRID’s continued progress in delivering on our declared growth strategy.”
Guest added that the benefit of the augmentation of the Glassenbury projects will “begin to be reflected” in GRID’s 30 June 2025 NAV.
He also made a commitment that the investment fund will undertake another seven augmentations in 2025 and early 2026, funded by GRID’s debt refinancing. Together, Guest said these will “add meaningfully to the portfolio’s EBITDA and value in absolute and per share terms”.
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