Drax Group has agreed to acquire three battery energy storage projects for 157.2 million British Pounds, expanding its portfolio as it faces a regulatory investigation into its biomass sourcing.
The power generation company said Thursday it will buy the 260-megawatt portfolio from developer Apatura Limited, with projects located across Scotland and England.
Construction is expected to begin in 2026, with the first site becoming operational in 2027, according to the company.
The deal is Drax's first investment in short-duration storage and is intended to provide fast-response power to help stabilize the grid as it becomes more reliant on intermittent renewable sources.
“This acquisition is our first investment in short duration storage as part of our FlexGen portfolio, supporting UK energy security and a clean power system,” Chief Executive Will Gardiner said in a statement.
The move comes as Drax is being investigated by the U.K.'s Financial Conduct Authority over certain historical statements regarding the sourcing of its biomass fuel.
The company previously disclosed the probe covers the period from January 2022 to March 2024 and the compliance of its annual reports.
Drax will make staged payments for the projects between 2025 and 2028, funded from cash and existing facilities.
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