Akaysha Energy has closed an A$650m ($438m) deal for the Orana battery energy storage system (BESS) project in New South Wales, Australia.

The three-year facility will fund the construction of the Orana project, which is located within the Central West Orana renewable energy zone.

The project has a planned capacity of 1,660 megawatt hours (MWh) and will come online in 2026.

Financing was offered by 11 banks, including domestic banks ANZ, CBA and Westpac, and international banks such as BNP Paribas, the Canadian Imperial Bank of Commerce and Siemens Financial Services through Siemens Bank.

Akaysha has also secured A$75m in letters of credit to meet the project's security obligations.

Akaysha managing director and chief financial officer Andrew Wegman highlighted that this financing follows an A$250m BESS portfolio debt financing announced in April 2024.

Wegman added: “We are very pleased to announce the successful closing of the debt financing of the Orana project as we move into construction on Akaysha’s first four-hour BESS.

“As the largest standalone BESS financing globally, this achievement not only secures the capital for Orana’s construction but also highlights the strong support we have received from both local and international banks, as well as from BlackRock.

“This milestone is a significant accomplishment for Akaysha and an important step for Australia’s energy transition. With this latest round, Akaysha and BlackRock have committed and mobilised a total of A$3bn of capital into the energy transition.”

With the Orana project now under construction, Akaysha's portfolio of energy storage projects in Australia exceeds 4 gigawatt hours.

The project's financing includes a 12-year "virtual toll" offtake agreement with EnergyAustralia for 200MW of contracted capacity.

The Orana BESS will be equipped with Tesla Megapack technology and have its balance of plant delivered by CPP.