Drax Group has agreed to acquire a 260MW battery energy storage system portfolio from developer Apatura for £157m, according to the companies.
Apatura said Drax will make staged payments between 2025 and 2028, with the developer responsible for taking the assets from ready-to-build to commercial operation under a construction services agreement.
The projects, located in Scotland and northern England, are two-hour duration systems and will begin construction in 2026, with two sites completing in 2027 and the third in 2028, according to Apatura.
Apatura added that the agreement includes a right of first offer for Drax on a further eight planned sites totalling 289MW.
Giles Hanglin, CEO of Apatura, said: “This deal represents a strong strategic fit for Drax and Apatura, who are both closely aligned with UK energy objectives of energy security and decarbonisation.”
He added: “Apatura is responsible for Scotland’s largest energy storage pipeline, with 10GW of renewable energy capacity in development.”
Drax CEO Will Gardiner said: “This acquisition is our first investment in short duration storage as part of our FlexGen portfolio to support UK energy security and a clean power system.”
Gardiner said: “We look forward to 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.”
Apatura CFO James Perry said: “Aligning with an organisation like Drax means we’re propelling the energy transition forward.”
Apatura said battery storage will support the UK system as demand rises and older thermal plants retire.