Norwegian renewable energy developer Scatec has closed a $102m funding round from Climate Fund Managers (CFM) to support Release, a platform to serve mining and utilities markets.
The funds will expedite Release’s growth as a separate platform.
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Launched by Scatec in 2019, Release provides flexible and mobile solutions for leasing pre-assembled and modular solar and battery equipment.
It provides a new approach towards distributed solar PV and battery energy storage systems (BESS) to deliver simple and on-demand renewable energy for mining and utility projects.
The system offers modular solutions, beginning with 5MW blocks that include pre-assembled and containerised moveable trackers and storage units.
They can be deployed using lease agreements that last for at least five years and up to 15 years.
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By GlobalDataCFM will provide both equity and debt funding for Release under the agreement, which was announced in July 2023.
CFM will allocate $55m (€52.08m) of the total $102m towards acquiring a 32% stake in Release. Scatec will hold the remaining 68% ($47m) interest as shareholder loans, with a portion on concessional terms.
CFM is a fund manager supported by FMO, the Dutch entrepreneurial development bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.
Scatec CEO and Release chair Terje Pilskog stated: “We welcome Climate Fund Managers as a strategic partner to fuel the solid growth journey of the Release platform. With this collaboration, we are not only raising funds; we are sharing the future of renewable energy solutions. Release is offering a unique solution in a rapidly growing market segment that requires a different business model than Scatec’s larger-scale project business.
“We are excited to reach this key strategic milestone for Release. It is testimony to Release’s unique business model and Scatec’s ability to attract top climate-oriented fund managers on a mission to invest in value accretive projects in emerging economies.”
According to Scatec, Release is gaining a foothold, particularly in the African utilities market.
It has projects operating and under construction in countries including Cameroon, South Africa, Mexico and South Sudan with a total capacity of 47MW in solar and 20 megawatt-hours in BESS.
