Shell has entered into a trading agreement for a 100MW battery in Hampshire, England, under construction by BW ESS and Penso Power.
The seven-year fixed-price tolling agreement secures revenues for the 100MW/330MWh Bramley battery energy storage system (BESS) project.
The deal is the first announced long-term tolling agreement for a single BESS asset in Great Britain, creating a template for a new revenue structure that will help to unlock energy storage market opportunities across Europe.
The fixed-price tolling agreement provides revenue certainty for BW ESS and Penso Power while Shell will trade the Bramley BESS into a range of ancillary services and wholesale markets.
The Bramley BESS is the first in Europe to deploy Sungrow’s PowerTitan 2.0 liquid cooled BESS.
This has enabled BW ESS and Penso Power to deliver a 330MWh asset within a relatively small project footprint.
Bramley is expected to be the longest duration BESS in the UK at the time of commissioning, which is expected in fourth quarter this year.
“We are thrilled to partner with the highly experienced energy trading team at Shell on this project,” said BW ESS chief executive Erik Stromso.
“Bramley showcases our commitment to advancing energy storage solutions that set the bar for the wider market – while pioneering new models for project financing and operation.”
“This tolling agreement, which has been some time in the making, demonstrates the attractiveness of longer-duration, higher-performance battery systems.
“It not only secures long-term revenues for Bramley, but also helps enable the market’s shift away from short-term frequency response towards load shifting.”
Head of power and systematic trading at Shell Energy Europe Rupen Tanna added: “Tolls have been a feature of conventional energy trading for many years.
“By extending the business model to battery storage, Shell has the trading experience to add significant value, while supporting the UK’s ongoing energy transition.
“The experience gained through these early tolling contracts will be invaluable to the wider market.”