Osborne Clarke advises terralayr on EUR 192 million financing round for German battery storage roll out

Osborne Clarke has advised terralayr, an energy flexibility provider focused on battery storage in Germany, on a growth equity financing totaling EUR 192 million. The funding round was led by European investment firm Eurazeo, through its infrastructure division, and was supported by existing investors, including RIVE Private Investment.

The proceeds from the capital increase will enable terralayr to further expand its portfolio of grid-connected battery storage assets in Germany and to scale its proprietary flexibility platform LAYR – a “flexibility-as-a-service” offering addressing one of the most dynamic segments of the European power market.

terralayr develops, owns and operates battery storage systems and combines its asset business with its proprietary software platform LAYR, which virtualises battery assets and provides a route-to-market solution. The platform offers, among other things, tolling structures, flexibility auctions and value-enhancing risk management – both for terralayr’s own assets and for third-party investors and users of flexibility solutions. This combination of assets, marketplace and technology makes terralayr a frontrunner in the German battery storage market.

In Germany, terralayr already owns more than 150 MW of operating and under-construction assets, as well as around 200 MW in a ready-to-build status, partly backed by tolling agreements with, among others, RWE and Vattenfall. An additional secured project pipeline of around 8 GW from in-house development and co-development partnerships provides the basis for further exponential growth. Osborne Clarke provides ongoing legal advice to terralayr and also acted as vendor legal due diligence provider to terralayr in this transaction.

“This capital raise will enable us to increase the pace of our asset growth in Germany, which is critical for the scaling of our digital platform. This will make us an even stronger partner to utilities, asset owners, flexibility traders, and other users of flexible power assets. Osborne Clarke was once again part of our legal team also for this transaction, and we rely on Osborne Clarke as one of the leading law firms in the German battery storage market due to their extremely solution-oriented and practical advice, combined with in-depth industry knowledge and high responsiveness of their highly diverse energy team,” says Philipp Man, Co-Founder and CEO of terralayr.

“The financing of terralayr highlights the strong momentum in the German market for large-scale battery storage systems. Digital flexibility solutions such as LAYR are becoming a central pillar of the energy transition – both for grid stability and for the integration of renewable energies – and terralayr stands out with its unique combination of assets and proprietary platform,” says Dr Daniel Breuer, Head of Energy & Energy Transition at Osborne Clarke. “We are delighted to have once again supported terralayr on this transformative transaction together with our team in the UK and our best-friends firm in Switzerland MLL Legal.”

The Osborne Clarke team advising terralayr as lender due diligence provider, led jointly by Dr Daniel Breuer (Lead Partner), Dr Marleen Rheker and Dr David Langenbach (both Co-Leads, all Energy/Project Agreements), comprised Anna von Bremen and Rahel Brockmann (both Route-to-Market/Tolling), Dr Thies Goldner, Alexandra Nautsch, and Anne Müller (all Corporate), Bineta Diambang and Friedrich Polzin (Real Estate), Dr Karla Klasen, Veronika Thalhammer and Dr Maria Batyreva (all Energy/Project Agreements), Natalie Kopplow, Tim Schultze and Dr Maximilian Orthmann (all Permits), Olexiy Oleshchuk, Andreas Baumann and Arsen Dutka (all Finance), Christoph Seidler and Sophie Ninnemann (both Employment), Adrian Schneider and Lucie Fassbender (both IT), Elisabeth Macher and Dr Jonas Völkel (both IP), as well as Konrad Teßmar (Legal Project Management).

Osborne Clarke Germany was supported by Osborne Clarke UK and MLL Legal in Switzerland.