AIP Management is acquiring a 50% stake in a 500MW UK battery energy storage system (BESS) project owned by a fund managed by Copenhagen Infrastructure Partners (CIP).
AIP will co-own the construction-stage Coalburn 2 battery project in South Lanarkshire, in southern Scotland, alongside Copenhagen Infrastructure IV.
CIP said it will continue to lead delivery of the Coalburn 2 project through the current construction phase.
Once the site is commissioned in 2027, AIP will take its 50% ownership stake in what will then be Europe鈥檚 largest BESS project. Financial details were not disclosed.
Nischal Agarwal, partner at CIP, said: 鈥淎s CIP鈥檚 development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming AIP as a new partner on our Coalburn 2 site, which once commissioned in 2027 shall be Europe鈥檚 biggest operational BESS project.鈥�
The deal follows a similar transaction in April, where AXA IM Alts took a 50% stake in CI IV鈥檚 adjacent 500MW Coalburn 1 BESS project in South Lanarkshire. CIP is also developing the 500MW Devilla project in Fife, near the town of Kincardine.
Agarwal said the delivery of Coalburn 2, alongside CIP鈥檚 Coalburn 1 and Devilla projects, will 鈥渋mprove the UK鈥檚 energy security, enable more low cost renewables to be delivered and will reduce costs for British consumers through enhanced system flexibility鈥�.
Greg Falzon, partner and co-head of investments at AIP, said: 鈥淭his investment reinforces our conviction in the UK energy-storage market and reflects our strategy of partnering selectively on high-quality, ready-to-build or operational assets.
鈥淭ogether with our recent Ardenham investment, it forms part of a growing portfolio that combines strong downside protection with long-term value creation.鈥�
Nordic financial group Storebrand owns a 60% stake in AIP, which was founded by Danish pension provider PKA and is also backed by fellow Danish pension fund PenSam.
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