Staff Reporter
22 November 2024 12:33
Altech Batteries has announced that it has progressed funding of its CERENERGY sodium-chloride solid-state battery project in Saxony, Germany, appointing key advisers to assist.
The company, through its Germany subsidiary Altech Batteries GmbH, appointed a global big four professional services firm to assist in securing finance for the 120MWh CERENERGY battery manufacturing plant.
The project’s financing strategy of debt, equity, and grants will cover not only the capital expenditures but also financing costs, working capital, debt service coverage, and an additional contingency for potential business interruptions.
Altech expects to access EU and German grant money to underpin the project.
CEO and MD Iggy Tan said in a statement that, “The process has been onboarding a debt adviser, and we have now completed an investment document which we call a teaser, and also have established a project data room for the due diligence process.
“The teaser has gone out to 10 banks and two venture debt funds and the feedback is very positive.”
Altech developed their Sodium Chloride Solid State (SCSS) battery – made up of far cheaper materials than traditional lithium ion batteries – with its joint venture partner, leading German battery institute Fraunhofer IKTS.
The company is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project.
Altech is considering divesting a minority interest in the project to one or two strategic investors who can add strategic value to the project, including large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition.
“To date, significant progress has been made in these equity discussions,” it said.
“Several Non-Disclosure Agreements (NDAs) have been signed, allowing for deeper engagement with prospective investors.”
In September, Altech announced the execution of an Offtake Letter of Intent between Zweckverband Industriepark Schwarze Pumpe (ZISP), under which ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production.
Further reading
Altech completes sodium battery construction
Picture: Altec Batteries/ Daniela Herold (Fraunhofer IKTS Battery Development Leader) and CERENERGY ABS60