UK's Drax inks 10-year tolling agreement for 250MW battery storage in England (updated)
30/01/2026 07:42
Updates with details in paragraphs 2 & 3, CEO comment in 5-6 Jan 30 (Reuters) - British power firm Drax Group DRX.L said on Friday it has signed a 10-year tolling agreement for a 250-megawatt battery energy storage system (BESS) with Fidra Energy, as the company accelerates its broader battery storage business. The deal, which is indexed to UK inflation, requires Drax to pay a fixed annual tolling fee over the 10-year term. Fidra is expected to take a final investment decision on the project by the third quarter of 2026, and begin operations in the second half of 2029. Under the agreement, Drax will toll the two-hour battery storage asset at West Burton in Nottinghamshire, with no upfront capital cost as construction, maintenance, and availability risk remain with Fidra. A tolling agreement lets one company operate another party's energy asset for a fee, without owning or building it. "Flexible Generation technologies like battery storage will support a secure, affordable and clean energy system for British homes and businesses," said Drax Group CEO Will Gardiner in a statement. "Our first BESS tolling agreement is an important step in our ambition for a gigawatt scale pipeline of battery storage opportunities," said Gardiner. (Reporting by Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich) ((Ankita.Bora@thomsonreuters.com;))