Burges Salmon advises FSFL and JLEN joint venture on battery storage acquisition

The firm has advised a joint venture between Foresight Solar Fund Limited and JLEN Environmental Assets Group Limited on the acquisition

01 June 2021

Burges Salmon’s Corporate Energy team has advised Foresight Solar Fund Limited (FSFL) and JLEN Environmental Assets Group Limited (JLEN), as a joint venture, on the acquisition of Sandridge Battery Storage Limited (SBSL), the owner of a consented battery storage project, located in Melksham, UK.

SBSL holds the development rights to construct the Sandridge battery storage project, a 50MW lithium-ion battery energy storage system. The transaction – in which both parties acquired an indirect 50 per cent equity stake – marks FSFL’s first and JLEN’s fourth investment in battery storage as an asset class.

Adjacent to the Sandridge solar park, which is already owned by FSFL, the battery storage project is fully consented and construction ready. The acquisition will see the joint venture invest up to £25.4 million in the project, with the battery expected to enter into commercial operation in October 2022.

Fuad Yusibov, Investment Associate at Foresight Group – adviser to JLEN and FSFL – says: “This deal builds upon Foresight’s momentum in the storage sector, complementary to the funds’ wind and solar operations, thereby providing diversification and operational efficiency benefits. The importance of the role of battery storage systems in energy transition is increasing by the day, manifested by the introduction of new services such as Dynamic Containment, further supporting the business case for batteries. The Sandridge project will contribute to the strengthening and decarbonisation of the grid, whilst providing an additional, diversified source of income to both funds.

“Burges Salmon played a pivotal role in this transaction, facilitating the legal processes with various counterparties, including the sell-side, EPC/O&M, and Route-to-Market providers. We have relied extensively on their knowledge and experience in this sector.”

The Burges Salmon team advising on the transaction was led by partner Camilla Usher-Clark and associate Danny Perera, with support from solicitor Elena Kaltsas and partner James Phillips, who leads the specialist due diligence team.

Camilla adds: “We’re delighted to have supported FSFL and JLEN in concluding the acquisition of the Sandridge battery storage project. The acquisition is an exciting step for FSFL in particular, as its first investment in this asset class.”

Key contact

Camilla Usher-Clark

Camilla Usher-Clark Partner

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