Europe now generates more than 40% of its power from renewables after an aggressive push to green its energy mix since Russia’s invasion of Ukraine. The bloc is in need of more storage for its growing wind and solar generation, electric vehicles and energy demands from data centers.
Amsterdam-based Return builds battery farms and leases the storage capacity to utilities, grid operators and large energy users. Return has 70 megawatts of storage in the Netherlands and is developing 450 megawatts more. It says it has €2 billion worth of long-term customer contracts in place.
Its model differs from battery developers that actively trade energy. “This model is attractive because it generates predictable cash flows, underpinned by contractual commitments,” said Sanne Hofland of APG, which invested €300 million ($348.6 million) for a minority stake in Return.
The Dutch pension fund manager made the investment on behalf of ABP, a nearly €600 billion pension fund. ABP is boosting its infrastructure mandate from 5% to 10% of its portfolio, focusing on sustainable infrastructure, which Hofland cited as “central to ABP’s impact investing strategy.” It first screens opportunities for financial returns, then for impact.
“Return meets both: it offers stable, contracted cash flows and supports the energy transition through grid-scale battery infrastructure,” Hofland told ImpactAlpha.
Battery recycling
Separately, UK-based Allye Energy raised $2.5 million in seed equity to support its portable battery systems that use retired EV batteries. It makes two sizes – one for commercial use and a larger system for industrial use – that can be purchased, leased or rented.
“Allye’s innovative approach to repurposing EV batteries represents a circular economy breakthrough,” said Benedikt Sobotka of Alpha Future Funds, which backed the company alongside Elbow Beach.
