Drax Group has agreed to acquire a 260-megawatt (MW) portfolio of battery energy storage projects from developer Apatura for £157 million, the companies said on Thursday, marking the energy firm’s first investment in short-duration storage.
Under the terms of the deal, Drax will make staged payments between 2025 and 2028, while Apatura will oversee development and construction under a services agreement, taking the assets from ready-to-build to full commercial operation.
The three projects, located in Scotland and northern England, will each provide two-hour storage capacity. Construction is set to begin in 2026, with two sites expected to complete in 2027 and the third in 2028, Apatura said.
As part of the agreement, Drax has been granted a right of first offer on a further eight planned Apatura sites totalling 289MW of capacity.
Giles Hanglin, Chief Executive of Apatura, said the partnership aligns with both companies’ energy strategies. “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,” Hanglin said. He added that “Apatura is responsible for Scotland’s largest energy storage pipeline, with 10GW of renewable energy capacity in development.”
Will Gardiner, Chief Executive of Drax, said the transaction supports the company’s efforts to expand flexible generation capacity. “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 Chief Financial Officer James Perry said the partnership would help accelerate the transition to cleaner power. “Aligning with an organisation like Drax means we’re propelling the energy transition forward,” he said.
Apatura added that the planned battery systems will provide essential grid support as electricity demand grows and older fossil-fuel plants retire.
