Simec Atlantis Energy (SAE) has entered an agreement with Energy Optimisation Solutions and Quinbrook Infrastructure Partners to deliver a 230MW battery project.
The portfolio company Uskmouth Energy Storage (UES) will own and operate the project.
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The development includes a modification of the grid connection agreement and a planning application, the latter to be determined by Newport City Council.
Construction is expected to take 18 months, with the project expected to become operational towards the end of 2024.
The energy storage system will deliver to SAE £40m in revenue over 30-years, of which £11m will be paid within the next 18 months, subject to the achievement of certain milestones, the company said.