UK power generator Drax has signed a toll agreement with West Burton C to gain full operational control and dispatch rights for a 250MW/500MWh battery energy storage system (BESS) in the UK.
West Burton C, a subsidiary of British battery company Fidra Energy, will make a final investment decision on the BESS project in the third quarter of this year and, should the project go ahead, the company expects to begin commercial operations at the facility in 2028.
Once work starts, Drax will pay a fixed annual toll rate, indexed to the UK Consumer Price Index (CPI), for ten years to gain operational control and shipping rights for the 2-hour project. Drax will retain all revenue from the project, with the exception of revenue from the Capacity Market (CM).
“Our first BESS toll agreement is an important step in our ambition for a pipeline of gigawatt-scale battery storage capabilities, joining our recent acquisitions of Flexitricity and three battery storage developments,” said Drax CEO Will Gardiner, referring to Drax’s purchase of Flexitricity last week And the acquisition of three BESS projects from Apatura last year.
These two deals cost Drax a total of £199 million, and although the company did not specify the finances involved in the West Burton C toll deal, all three represent a significant investment in the UK battery sector. However, not all of Drax’s investments in space have been successful. after withdrawing a £200m offer for Harmony Energy Income Trust (HEIT).which acquires construction-ready BESS assets created in March last year.
