Lion Storage closes finance on 1.4 GWh merchant battery in Netherlands

Dutch energy storage developer Lion Storage has announced financial close on a battery energy storage system (BESS) it has described as the “largest BESS in the Netherlands.”

The €350 million ($367 million), 350 MW/1.4 GWh Project Mufasa, at the coastal city of Vlissingen in the southwest Netherlands, will feature 372 of Tesla’s MegaPack 2 XL battery systems, with the US-based company also providing EPC services for the site.

Due to be operational in the first half of 2027, developer Lion said Project Mufasa will operate entirely on a merchant basis, without a fixed electricity offtake contract. The project will, the developer stated, “rely solely on revenues from the various Dutch power markets and the skills and expertise of the project’s leadership team.”

Lion, part of Dutch renewables investor Return since 2023, also said the project would be the largest BESS in the Netherlands completely funded by non-recourse finance.

Backers, led by Australia’s Macquarie Capital, include Dutch investor The Infrastructure Company, Return investors, and six banks. Lion said Santander Corporate & Investment Banking acted as financial advisor and Greenberg Traurig was legal advisor on the finance package.

Lion Storage Co-Founder Arno Hendriks, quoted in a press release issued to announce the closure of project finance on the site, said, “Project Mufasa is a game-changer for battery storage in the Netherlands. As the first of its kind to secure full project financing, it proves that energy storage is not just viable – it’s investable.”

The site will be operated by Dutch energy company Eneco and will use the high-voltage grid connection of a former coal-fired power plant.