Copenhagen Infrastructure Partners divests 50% of Coalburn 2 to AIP Management

Coalburn 2 is a 500MW construction-stage battery project, which is set to become one of the biggest of its kind in Europe.

COPENHAGEN, Denmark, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Copenhagen Infrastructure Partners (CIP), on behalf of its fund Copenhagen Infrastructure IV (CI IV), has signed an agreement to divest a 50% ownership stake in Coalburn 2 to funds managed by AIP Management (“AIP”), a specialist investor in energy and decarbonization infrastructure. Once operational, the new project will be among Europe’s largest battery storage facilities, supporting grid stability and the integration of renewable energy generation.

Coalburn 2 is a 500MW, 2-hour duration, lithium ion battery energy storage system (BESS), located in South Lanarkshire in southern Scotland. CIP took a financial investment decision for Coalburn 2 in December 2024 and will continue to lead the Coalburn 2 project delivery through its current construction phase. Coalburn 2’s 50% ownership stake transfer to AIP shall occur upon site commissioning. The project has a high level of contracted revenues through a 10-year optimisation agreement with SSE, alongside a 15-year capacity market agreement, providing visibility and a stable foundation for returns while maintaining exposure to market upside.

Coalburn 2 is one of three transmission-connected BESS assets co-developed by Alcemi and CIP that are currently being constructed by CIP in Scotland. These will collectively have a total power capacity of 1.5GW and will be able to store and supply the grid with a total of 3GWh of electricity, enough to supply over 4.5 million households for two hours. CIP is developing a further 4.5GW of BESS projects across Scotland and England.

Coalburn 2 is part of an expanding CIP portfolio of UK energy infrastructure investments which - alongside the company’s portfolio of battery projects across the US, Europe and Australia - makes it one of the leading investors of battery storage projects globally.

For AIP, the investment in Coalburn 2 marks a significant step in its strategy to build a portfolio of high-quality battery storage assets that provide flexible capacity to the UK’s electricity system. AIP focuses on investing in assets that are either ready to construct or operational, avoiding early-stage development risks. It follows AIP’s recent investment in a 2.4GWh portfolio of operational and under-construction BESS projects, reflecting its growing presence as a long-term investor in the UK energy storage sector. To date, AIP’s investments have a combined capacity of approximately 7GW, which collectively will contribute to avoiding 10 million tonnes of greenhouse-gas emissions.

Nischal Agarwal, Partner at CIP said: “As CIP’s development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming AIP as a new partner on our Coalburn 2 site, which once commissioned in 2027 will be one of Europe’s biggest operational BESS projects. The delivery of Coalburn 2, alongside CIP’s Coalburn 1 and Devilla projects, will improve the UK’s energy security, enable more low cost renewables to be delivered, and reduce costs for British consumers through enhanced system flexibility.”

Greg Falzon, Partner and Co-Head of Investments at AIP, said: “This investment reinforces our conviction in the UK energy storage market and reflects our strategy of partnering selectively on high-quality, ready-to-build or operational assets. Together with our recent Ardenham investment, it forms part of a growing portfolio that combines strong downside protection with long-term value creation.”

About Copenhagen Infrastructure Partners
Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) today is the world’s largest dedicated fund manager within greenfield energy investments. The funds managed by CIP focus on investments in offshore and onshore wind, storage, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, advanced bioenergy, and Power-to-X. In the UK, CIP is investing in over 25 GW of renewable energy infrastructure, representing over £40 Billion of future investment potential.

CIP manages 13 funds and has to date raised approximately EUR 33 billion for investments in energy and associated infrastructure from approximately 180 international institutional investors. CIP has projects in more than 30 countries and more than 2300 employees across platforms. For more information, visit www.cip.com

About AIP Management
AIP specialises in decarbonisation and energy infrastructure investments that facilitate the energy transition in Europe and North America. Our team comprises 80 professionals with extensive expertise in investments and energy working from Copenhagen, London, Madrid, and New York. To date, AIP has invested over €8 billion in infrastructure assets. This includes renewable energy assets with a capacity of approximately 7 GW. Once fully operational, AIP’s investments will contribute to avoiding 10 million tons of greenhouse gasses and support about 6 million households with renewable electricity. AIP is part of Storebrand, a Nordic financial group, which owns 60% of AIP. For more information, visit: aipmanagement.dk

Media Contact:

Copenhagen Infrastructure Partners
Email: media@cip.com

AIP Management
Archie Graves, Brackendale Consulting
Phone: +44 7803 261488
Email: archie@brackendaleconsulting.com

Alesha Cheah, Brackendale Consulting
Phone: +44 7717 250465
Email: alesha@brackendaleconsulting.com