By Anthony O. Goriainoff

Drax agreed to buy three battery energy storage system projects from Apatura for 157.2 million pounds ($207.4 million) in the U.K.

The U.K. power-generation company said on Thursday that it would make staged payments between 2025 and 2028, and that these will be funded from cash and existing facilities. The payments will reflect construction milestones and will include payments to Apatura linked to project delivery, it said.

Drax also has an option to buy a further eight sites, encompassing 289 megawatts being developed by Apatura, a renewable energy and battery energy storage system, or BESS, developer.

The projects--to be located in Scotland and England--will provide capacity totaling 260 megawatts when fully commissioned and entail three ready-to-build BESS sites. Completion of the acquisition of the first two projects is expected in 2025, with the third project's completion expected in the first quarter of 2026.

The transaction is closely aligned with U.K. energy objectives of energy security and decarbonization, Drax said.

Construction on the sites is expected to start next year, with the first site becoming operational in Scotland in 2027.

"As the U.K.'s network increases its reliance on intermittent renewables, more dispatchable and reliable generation will be required to help keep the lights on when the wind isn't blowing or the sun isn't shining," Chief Executive Will Gardiner said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

October 30, 2025 03:48 ET (07:48 GMT)

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