Osborne Clarke advises Obton on BESS financing of a 137.5 MW/284.8 MWh project in Germany

Osborne Clarke advised its longstanding client Obton, a Danish renewable energy investment and asset management company, in securing senior and mezzanine financing for its biggest standalone battery energy storage system (BESS) in Lower Saxony, Germany. This BESS, with a capacity of 137.5 MW/ 284.8 MWh (one of the biggest in Germany so far), aims to enhance grid stability and support the integration of renewable energies by mid-2026.

This long-term merchant-based financing, structured on behalf of one of Obton's battery storage funds, was complex and involved senior lending from Banco Santander, S.A., and holding mezzanine financing from several Berenberg Green Energy Debt funds.

The project marks a significant advancement in flexible grid-supporting infrastructure, accompanying the energy transition driven by volatile renewable energies. Osborne Clarke is happy to once again bring in its energy transition expertise around BESS projects from both regulatory and financing perspective.

Henrik Knattrup Nielsen, Senior Manager, Legal, Energy Storage at Obton states: “The Osborne Clarke team has provided reliable, efficient, and clear legal advice. Their in-depth knowledge and legal expertise throughout every aspect of contracting of the BESS is highly appreciated.”

Osborne Clarke's team led by Olexiy Oleshchuk (Project Finance) and Dr Daniel Breuer (Energy) included Hriday Chawla and Arsen Dutka (both Project Finance), Anna von Bremen, Dr Marleen Rheker, Dr Maria Batyreva, Dr David Langenbach, Dr Thies Goldner, Dr Maximilian Orthmann, Friedrich Polzin and Tim Schultze (all Energy), demonstrating the capability to offer comprehensive legal support in this landmark BESS transaction.

Banco Santander was advised by Hogan Lovells. Berenberg was advised by Chatham Partners and Kromann Reumert.