New financing secures plans for Etzel facility to expand into storage of hydrogen, supporting Europe’s transition to alternative energy sources.
PATRIZIA, a leading partner for global real assets, has secured EUR 210 million in refinancing for its open-ended special AIF “IVG Cavern Fund” which owns the Etzel storage facility that holds essential energy reserves for Germany and north-west Europe. As part of the extension of an existing financing tranche, PATRIZIA has attracted six new financing partners in addition to the existing banks in the vehicle.
The major refinancing supports the further development of the Etzel facility in northern Germany, which is the largest independent supplier of caverns facilities in the country. The future plans for the site will see it further expanded and converted into a hydrogen storage facility, supporting Europe’s transition to clean energy sources. This year, the site completed the first leak test and started work to install equipment as part of its ambition to be ‘H2 ready’ by 2026.
The Etzel facility, which comprises a natural underground salt dome, consists of 75 individual underground caverns between 900 and 1,700 metres deep. The caverns have a total volume of over 40 million cubic metres, with an average natural gas cavern at the site able to supply around 80,000 people with energy for a year. The convenient location around 20 minutes from Bremerhaven on the North Sea combined with the unique geological composition of the site make Etzel one of the most attractive underground energy storage locations in northern Europe.
Heiko Süß, Head of Fund Management Frankfurt at PATRIZIA, said: “The strong result of the oversubscribed refinancing round underlines our long-term, solid investment strategy for the fund. With the solid backing of our partners, we are securing the sustainable position of this unique asset as a central component of Germany’s future hydrogen infrastructure.”
The “IVG Cavern Fund” was launched in 2008 and invests in underground storage facilities for liquid and gaseous energy sources. A total of 15 investor groups are currently invested in the special fund. The ongoing cash flow is generated from the fees that energy companies pay for the storage of energy sources in the caverns.
You can now read the full press release at the link below