Varco Energy adds 100 MW battery project in UK

Varco Energy has taken ownership of the Old Allen Road battery energy storage system (BESS), previously known as Bradford West 2, a 99.9 MW grid-scale project in West Yorkshire in England, UK. The project is scheduled to enter operations in 2027, with previous details indicating the storage capacity was to be set at 200 MWh.

The acquisition marks the final capital commitment of the Adaptogen Battery Storage Fund, a portfolio of UK grid-scale storage assets funded and owned by Adaptogen Capital, an energy transition investor. Varco Energy, owned by Adaptogen, is a UK-based battery storage owner-operator, and it will manage the day-to-day operation of the project following commissioning. No financial details were announced, though the facility is understood to have been purchased from Renewable Connections Developments.

The Old Allen Road BESS is designed to provide essential grid-balancing services, including frequency and voltage regulation, reserve capacity, and load-shifting, supporting the integration of renewable generation and maintaining system stability.

Jack Lowe, director at Evolution Infrastructure, said: “We are delighted to have acted as financial advisor to the sellers on this milestone transaction. Bradford West 2 is a flagship BESS project that will make a meaningful contribution to the UK’s energy transition. This successful disposal, during what has been a turbulent sales environment during grid reform, highlights continued investor appetite for high-quality battery storage assets, and EvoInfra’s dedicated approach to facilitating transactions.”

Adaptogen Capital managing director James Mills said: “The successful acquisition of the Old Allen Road BESS, supported by strong investor demand, demonstrates both the scale of opportunity and the critical role that Adaptogen is playing in enabling the energy transition.”

Varco Energy’s LinkedIn post also thanked lawyers at Watson Farley & Williams.

The transaction helps Adaptogen Capital’s target of 350 MW of operational UK storage assets by 2027, with an additional 275 MW in development. In 2023, Adaptogen Capital raised £207 million for its Adaptogen Battery Storage Fund. UK bank NatWest provided, as the sole lender, a £50 million capex facility to that fund.

Two projects from the fund, the Native River BESS and the Sizing John BESS, are already operational, each with 57 MW/138 MWh capacity and a 2.4-hour duration.