Byhmgard has signed an agreement with China Machinery Engineering Corporation to jointly develop a 1-gigawatt battery energy storage portfolio in Europe, the company said on Thursday.
The energy storage developer said the Memorandum of Understanding seeks to help Byhmgard accelerate the expansion of its energy storage assets by securing access to financing and industrial project capacity through CMEC.
Under the agreement, CMEC will provide favorable payment terms for deliveries of battery hardware, allowing the assets to be recognized on Byhmgard's balance sheet and used as collateral for external project financing.
The structure would reduce the energy firm's reliance on its own equity during the initial project build-out phase, enabling faster deployment of battery energy storage projects across Europe.
Byhmgard said the partnership also includes efforts to structure complementary financing solutions in parallel with hardware deliveries.
The company is pursuing a strategy focused on building, owning and operating large-scale battery energy storage assets in Europe, while generating recurring revenue from its virtual power plant software platform.
Byhmgard did not disclose the financial terms of the MOU.