HSF advised Equis Australia on project financing, while KWM guided the financiers
Herbert Smith Freehills (HSF) has assisted Equis Australia with the development and limited recourse project financing of the two-stage Calala battery energy storage system (Calala BESS) in Tamworth, NSW.
The Calala BESS consists of two facilities, one with a capacity of 100MW/200MWh and the other 150 MW/300 MWh, for an aggregate capacity of 250MW/500MWh, supplying two hours of electricity to power up to 115,000 NSW homes.
HSF said that Tesla will supply and commission the battery systems; Consolidated Power Projects Australia will perform the balance of plant works; and Equis’ asset management team will support construction and operational delivery.
Partners Alison Dodd, Gerard Pike, and Kris Percy led the cross-practice energy and finance teams at HSF. Support came from special counsel Ewan MacDonald; executive counsel Rebecca Davie; and senior associates Josh Attard, Matthew Selth, Jennifer He, Michael Trent, Tom Dougherty, and Stuart Robertson.
The team was also supported by solicitors Tia Liu, Arthur Hancock, Sarah-Anne Butler, Holly McNaughton, Yonnie Lipshatz, Rainer Gaunt, Mika Singh, Elizabeth Papapetrou, Rosalind Wei, Leana Lim, Shay Kavallero, and Joud Ghassali.
King & Wood Mallesons (KWM) guided Societe Generale, Sumitomo Mitsui Banking Corporation, and Westpac Banking Corporation as financiers, which provided the Calala BESS facilities with a $260m non-recourse senior debt package.
Partner Chris Dynon led the KWM team. Support came from senior associate Emma Reed and solicitors David Kennelly and Emily Powell.
“The Calala BESS was a complex project (particularly due to the unique multi-stage structure, with one stage having been financed on a merchant basis) but, due to the collaborative approach taken by everyone involved, the project was able to achieve this important milestone,” Dynon said in a KWM media release.
KWM also assisted SmartestEnergy Australia, which provides renewable energy solutions for businesses, with negotiating a long-term offtake agreement for the Calala BESS. KWM said this was its first battery tolling agreement.
SmartestEnergy partnered with Equis for the project’s first stage involving the 100MW/200MWh facility.
“This agreement marks a major milestone in SEA’s expansion into the Australian energy market, enhancing the firming capacity of its retail portfolio while also contributing to improved grid reliability and supporting Australia’s transition to renewable energy,” KWM said.
Partner Josh Thorneycroft and solicitor Annelise Nguyen led the KWM team advising SmartestEnergy.
“Firming assets like the Calala battery are helping drive the energy transition and we are very excited to have been a part of this project,” Thorneycroft said.
