Drax Group, a UK-based renewable energy company, has agreed to acquire a 260-MW, two-hour battery energy storage development portfolio from UK energy storage developer, Apatura Limited.
The deal includes three ready-to-build battery energy storage system (BESS) projects, two in Scotland and one in Northern England, as well as option over an additional eight sites totaling 289 MW that are being developed by Apatura. Drax will pay a fixed amount of £157.2 million in staged payments between 2025 and 2028, reflecting construction milestones and including payments to Apatura linked to their delivery of the projects. Completion of the acquisition of the first two projects is expected in 2025, with the third project expected in Q1 2026.
Will Gardiner, Drax Group CEO, said, “This acquisition is our first investment in short duration storage as part of our FlexGen portfolio, supporting UK energy security and a clean power system.
“Working with Apatura on the development of battery storage, which when commissioned will allow us to provide even more secure power to the country when it is needed. In combination with our long duration energy storage, flexible generation and renewable generation from biomass, we will be able to provide 4.4GW of dispatchable generation to meet demand.”
Once the BESS projects are operational, the Group’s FlexGen portfolio will include 1.8GW of energy storage and flexible generation capacity across nine sites in England, Scotland, and Wales. The portfolio will also incorporate demand-side flexibility through the Group’s Industrial and Commercial customer base. Including the 2.6GW from Drax Power Station, the Group’s total dispatchable generation capacity will reach 4.4GW.