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(Sharecast News) - Renewable energy firm Drax has signed an agreement with Apatura to acquire three battery energy storage system projects, which will provide capacity totalling 260MW when fully commissioned.
Drax said on Thursday that it will pay a fixed amount of 157.2m in staged payments between 2025 and 2028, reflecting construction milestones and including payments to Apatura linked to their delivery of the projects.
The FTSE 250-listed firm stated completion of the acquisition of the first two projects was expected to occur in 2025, with completion of the third project expected in Q126.
Chief executive Will Gardiner 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.
"As the UK's network increases its reliance on intermittent renewables, more dispatchable and reliable generation will be required to help keep the lights on when the wind isn't blowing or the sun isn't shining."
As of 0930 GMT, Drax shares were up 1.43% at 742.50p.
Reporting by Iain Gilbert at Sharecast.com
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