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Energy Infrastructure<br />

Energy Infrastructure

Critical architecture underpinning energy transition

Investment is needed in critical infrastructure including battery storage, EV charging and interconnectors. We have experience advising clients across each of these key areas.

Battery storage helps to balance electricity supply and demand and will be particularly important given the scaling up of intermittent renewable energy production.

The development of the high-speed electric vehicle (EV) charging network represents a huge infrastructure challenge and a corresponding opportunity for developers, infrastructure investors and debt providers.

Many of the changes required to enable the energy transition: the scaling up of renewable electricity generation; switching from natural gas to green gases such as clean hydrogen; sector coupling, require significant investments in grid infrastructure. This will include both refurbishment and new build, including interconnectors between nations.

Recent client highlights

Gigafactories

  • Three gigafactories for lithium-ion battery cell in France, Germany, and Italy: advised the Lenders (BNP Paribas, Deutsche Bank, ING and Intesa Sanpaolo) and the export credit agencies (Bpifrance, Euler Hermes and SACE) on the €4.4 billion debt raise from Automotive Cells Company to finance the construction of three gigafactories for lithium-ion battery cell production in France, Germany, and Italy, and for R&D. It represents one of Europe’s largest-ever debt raises in this industry.
  • Battery cell Gigafactory, Europe: advised Volkswagen on the establishment of a Gigafactory joint venture with Swedish Northvolt to set up a battery cell Gigafactory for the development and production of CO2-optimised lithium-ion batteries.
  • Tesla Gigafactory 4, Germany: advised Tesla on all issues related to the development and financing of its "Gigafactory 4" near Berlin, Germany, where Tesla operates its first European factory for cars, powertrains and batteries, including permitting, construction, project and supply agreements, state aid and real estate.
  • Gigafactories, Europe: advised a major car OEM in relation to proposed Gigafactories in several jurisdictions. We assisted with the site selection process and with entering into agreements with the authorities regarding the sites and subsidies.

 

Battery Storage

  • Zenobe, UK: advised KKR on its c.US$750m investment in Zenobe a global market leader in electrification-as-a-service solutions for fleets, and battery storage solutions for grid network infrastructure. The investment is the first through KKR’s global climate strategy. Global Investor Deal of the Year, PFI Awards 2023
  • Eramet-BASF battery joint venture, Indonesia: advised Eramet in relation to its joint venture with BASF to produce and offtake battery metals from the Weda Bay deposit in Indonesia.
  • Mercedes-Benz entry into Automotive Cells Company, Europe: advised TotalEnergies/Saft in the context of the entry of Mercedes-Benz into Automotive Cells Company (ACC), whose business is the design, manufacture and sale of battery cells and modules for electric vehicles.
  • Battery manufacturer IPO, China: advised Huatai Securities Company Limited on the US$1.3 billion global initial public offering of H Shares and listing of leading EV battery manufacturer CALB Co., Ltd. (“CALB”) on the main board of the Hong Kong Stock Exchange. Jiangsu-based CALB is among the largest EV battery suppliers in China.

 

EV Charging

  • Gridserve, UK: advised Gridserve over half a billion pounds in certified green financing to accelerate net zero transport with a huge expansion of its UK-wide EV charging network. This financing is both the largest debt raise globally for a privately-owned charge point operator and the first officially designated green loan for EV charging infrastructure in the UK. Europe EV Deal of the Year 2023, PFI Awards
  • PGGM’s investment in Electra, France: PGGM on its €304 milion equity fundraising to Electra, one of the fastest-growing operator of (ultra)fast charging infrastructure for electrically powered vehicles in Europe.
  • EV fast charger SPAC, Australia: advised Decarbonization Plus Acquisition Corporation II (DCRN), a special purpose acquisition company (SPAC), on its merger with a maker of fast chargers for electric vehicles, Tritium Holdings Pty Ltd, becoming the first Australian company to reach a deal with a SPAC.

 

Interconnectors

  • Xlinks, Morocco-UK: advised Abu Dhabi National Energy Company PJSC (TAQA) on its investment in Xlinks First Limited (Xlinks), the developer of the first of a kind Morocco - UK high-voltage direct current (HVDC) interconnector renewable energy project.
  • Artificial energy island, Belgium: advised Elia, one of the five leading transmission system operators in Europe, on the structuring and negotiation of the EPCI construction contract for the world's first artificial renewable energy island.
  • Viking Link Interconnector, UK/Denmark: advised the lenders on the export credit agencies (ECA)-backed financing of a pan-European subsea electricity cable, known as an interconnector, between the UK and Denmark. Named Viking Link, the 1400 MW cable will supply renewable energy to 1.4 million households thereby contributing to a more effective use of green energy.
  • EuroAsia Interconnector: advised EuroAsia on the development and construction of the EuroAsia Interconnector, a flagship project in the European energy market. The project will connect Cyprus with Israel and Cyprus with Crete and mainland Greece. This will create security supply and an energy highway between Europe and Asia that will deliver up to 2,000 MW of energy to Europe and will be the largest submarine electricity interconnector in history.

Our insights

betting-on-batteris-1000x600

Betting on Batteries: Powering the clean energy transition

With increasing global demand for batteries to power the clean energy transition, the opportunities and risks are multiplying. New technology, new markets and new deals, including those associated with mineral extraction, human rights and the supply chain, regulatory changes and the race to find funding are giving rise to a number of issues for businesses to grapple with. In this extract from a recent seminar, our international team considers the implications for the automotive sector, which is predicted to make up to 90% of future demand for batteries, as well as renewable energy generation, energy storage and beyond.

 Find out more about Betting on Batteries: Powering the clean energy transition
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Unlocking UK's net zero investment

As one of the first countries to enact net zero emissions legislation, the UK has led in its ambitions to deliver the net zero transition. The CBI, in partnership with Clifford Chance, worked with investors and businesses to identify “pull factors” for net zero investments and propose immediate actions that need to be prioritised by the government to strengthen the UK’s offer.

 Find out more about Unlocking UK's net zero investment

Multi-Purpose Interconnectors: Enabling the transmission of clean energy in the UK

As the UK strives towards its ambitious target of 50GW of offshore wind capacity by 2030, large-scale investment will be required in the offshore wind industry. It is increasingly clear that point-to-point connections between offshore wind farms and the grid will not be efficient for an expansion of this magnitude.

 Find out more about Multi-Purpose Interconnectors: Enabling the transmission of clean energy in the UK
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