Drax leans into battery storage with £157m shift into grid‑scale flexibility

Drax Group plc

Drax has agreed to acquire three battery energy storage system (BESS) projects from Apatura for £157.2 million. The portfolio totals 260 MW across two sites in Scotland and one in Northern England. All three are ready-to-build, with staged payments tied to progress milestones through to 2028. Construction is expected to begin in 2026, with the first site targeted to come online in 2027.

Drax is moving decisively into short-duration storage as part of its broader FlexGen strategy, which includes flexible gas, long-duration hydro, and now grid-connected battery systems. Once built, these projects will add a new layer to Drax’s 1.8 GW of dispatchable flexible capacity, separate from its 2.6 GW main generation site.

The deal structure itself is designed to manage capital exposure. Drax will release funds against delivery milestones, allowing it to tie expenditure to real progress while preserving balance sheet flexibility. It also secures an option to acquire a further 289 MW across eight additional sites from Apatura, potentially more than doubling its battery pipeline in a cost-controlled manner.

Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.

Share on:
Find more news, interviews, share price & company profile here for:

Drax secures low-carbon CfD for biomass units at Drax Power Station

Drax Group has signed a low-carbon dispatchable Contract for Difference (CfD) with the LCCC, covering all four biomass units at Drax Power Station from April 2027 to March 2031 at a strike price of £109.90/MWh.

Drax to acquire three battery storage projects totalling 260MW from Apatura

Drax Group has agreed to acquire three battery energy storage system projects from Apatura Limited for £157.2 million, expanding its FlexGen portfolio with 260MW of short duration storage capacity across sites in Scotland and England.

Drax Group completes £300m buyback and launches £75m extension tranche

Drax Group has completed its £300 million share buyback programme, repurchasing 47.2 million ordinary shares between August 2024 and October 2025.

Drax Group delivers stable H1 results and higher dividend

Drax Group plc reported half-year results for the six months to 30 June 2025, highlighting stable adjusted basic EPS of 65.6p and a 12% increase in the interim dividend to 11.6p.

Drax Group appoints former Shell Executive Frank Lemmink as CFO

Drax has named Frank Lemmink, a senior Shell finance leader, as its incoming CFO, bringing deep capital strategy and risk management expertise ahead of Andy Skelton’s retirement.

Drax confirms final HEIT offer and plans to let scheme lapse

Drax Group plc updates on its acquisition offer for HEIT, confirming a final bid of 88p per share while announcing potential changes to the acquisition timeline.

Search

Search