LONDON: Active Energy Group has signed Heads of Terms with Fonmon Castle Ltd to develop a 150-megawatt Battery Energy Storage System (BESS) in the Vale of Glamorgan, marking a strategic advance in the company’s renewable energy ambitions.
Under the agreement, Fonmon Castle Ltd will lease approximately 10 acres of land for 30 years to facilitate construction of the BESS facility. Active Energy will invest £40,000 to support site promotion, including District Network Operator applications and planning consent, led by specialist consultants.
The Heads of Terms remain valid for 18 months, during which Active Energy will actively support planning and development. Upon securing planning consent and lease commencement, the company’s initial investment will be reimbursed, along with 5% of the first year’s rent.
The proposed facility is expected to deliver 150MW of energy storage capacity, with an anticipated annual rent of £300,000 payable to Fonmon Castle Ltd. Final commercial terms are subject to agreement.
“This is a flagship opportunity for AEG to deliver meaningful energy infrastructure that supports the UK’s low-carbon future,” said Paul Elliott, CEO of Active Energy Group Plc. “We’re excited to move this project forward at pace.”
Bruton Knowles is acting as agent for both parties. The Board of Active Energy Group has approved and authorized the release of this announcement.
Further updates will be provided as the project progresses.