Herbert Smith Freehills advises lenders on the financing of Akaysha Energy’s Ulinda Park BESS Project

Herbert Smith Freehills (HSF) has advised a group of seven banks – Commonwealth Bank of Australia, DBS Bank, ING Bank, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, and Rabobank – on the financing of the Ulinda Park Battery Energy Storage System (BESS) project (the Ulinda Park BESS) which reached financial close last month.

The Ulinda Park BESS, along with the Brendale BESS project (which is part of the same financing) (together, the Projects), will produce more than 700MWh of new energy storage.

Akaysha Energy – a utility scale battery energy storage developer, asset manager and owner operator – developed the Projects. Akaysha Energy’s portfolio includes over 10 BESS under development in the National Electricity Market, with intentions to build, own and operate BESS globally. Akaysha Energy has partnered with Powin (for battery technology supply) and Consolidated Power Projects (for the balance of plant) for the Ulinda Park BESS project.

The HSF team was led by Finance partner, Elizabeth Charlesworth, with cross-practice support from partners Toby Anderson (Projects, Energy & Infrastructure), Julie Jankowski (Real Estate), Peter Davis (Projects, Energy & Infrastructure), Alison Dodd (Projects, Energy & Infrastructure), Kristen Percy (Projects, Energy & Infrastructure), Kathryn Pacey (Environment, Planning & Communities), and Ryan Leslie (Corporate). Senior associates and lawyers assisting on the matter included Arnica Mullins, Nicholas Gerovasilis, Talia Lake, Michael Trent, Saori Nakayama, Hugh Pegler, Jasmine Wood, Jack Fox, Jessie Sun, Blair Feng, Josh Attard and Grace Lee.

Elizabeth Charlesworth commented: “We’re very pleased to have advised the lenders on this Project and to have worked with Akaysha Energy and Ashurst on this unique financing structure. The depth of the HSF’s project finance, property, energy, procurement, connection and tax experience was key to ensuring lenders were supported on all aspect of this financing. This Project reflects Akaysha Energy’s dedication to lead the energy transition and improve grid security by constructing and managing some of the world’s most powerful batteries.”

Ashurst acted as legal adviser, and Azure Capital as financial adviser, to Akaysha Energy. DNV, Aurora, Marsh, KPMG and Mazars also acted as due diligence advisers.

HSF’s cross-practice teams continue to provide market-leading advice to clients in the clean energy sector, having recently advised:

• the lenders on the development and project financing of the 200MW/400MWh Rangebank Battery Energy Storage Systems, located in Cranbourne West, Melbourne, Victoria;
• Edify Energy on the greenfield development, financing and sale to Sosteneo of the 185 MW / 360 MWh Koorangie BESS located in Victoria which achieved completion and financial close in October 2023; and
• Fotowatio Renewable Ventures Australia (FRV Australia) on the project financing of the Walla Walla Solar Farm, located in Walla Walla near Albury, which will be one of the largest solar farms in New South Wales.