Active Energy inks storage system development deal with Fonmon Castle
Active Energy Group PLC on Friday said it has agreed to develop a 150 megawatt battery energy storage system in partnership with historic tourist attraction Fonmon Castle Ltd.
The London-based, biomass-focused renewable energy developer has signed a heads of term agreement to develop the system in the Vale of Glamorgan, Wales.
Shares in Active Energy closed up 3.7% at 0.15 pence in London on Friday afternoon. The stock remains down 19% over the past year, however.
The deal is valid for a period of 18 months, during which time Active Energy said it will actively support planning and development.
Fonmon will make around 10 acres available for the construction, on a 30-year lease. Active Energy will invest £40,000 to advance the site’s promotion, such as district network operator applications and planning consent.
Once the latter is secured and the lease starts, the investment will be reimbursed and Active Energy will receive 5% of the rent for the first year. The BESS will bring an anticipated annual rent of £300,000 payable to Fonmon.
The final commercial terms of the deal remain subject to agreement, the company noted. Further updates will be provided as the project progresses.
‘The Fonmon BESS is a flagship opportunity for AEG to deliver meaningful energy infrastructure that supports the UK’s low-carbon future. We’re excited to move this project forward at pace,’ said Active Energy Chief Executive Officer Paul Elliott.
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