Business
SAE takes full ownership of BESS project
SAE takes full ownership of BESS project.
About this update from Ampeak Energy Limited
[{"type":"text","content":"\n\n7 August 2024\n \n\n \nSIMEC Atlantis Energy Limited\n(\"SAE Renewables\", \"SAE\" or the \"Company\")\n \n \nSAE takes full ownership of 120MW/240MWh BESS project at Uskmouth\n \nSAE has achieved the next step in delivering its 'Building a Sustainable Future to 2035' strategy by taking full ownership of the 120MW Battery Energy Storage System (\"BESS\") project at the Uskmouth Sustainable Energy Park (\"USEP\"). According to the Company's latest estimates, the BESS project will generate average annual revenues of £12m and annual average EBITDA of £9m per annum in its first five full years of operation. The estimated capital cost of the project is £65m, which includes the deferred consideration and transaction costs.\n \nOn 6 August 2024, SAE completed a Share Purchase Agreement (\"SPA\") with Enso Green Holdings Limited (\"EGHL\"), a joint venture between Cero Generation Limited and Enso Energy Limited, to purchase all the shares in a 120MW/240MWh BESS project at its USEP. SAE has paid EGHL an initial consideration of £299k under the SPA, to acquire 100% ownership of the development vehicle, Enso Green Holdings E Limited, the vehicle which EGHL used to develop the BESS project and hold the grid connection, land option and planning application. Under the SPA, when the project reaches financial close, SAE will pay EGHL an additional amount of £3.85m as a deferred consideration, in recognition of their contribution to the project development to date.\n \nThis acquisition is a key part of SAE's recently announced strategy to become an owner and operator of its future energy projects.\n \nThe BESS project will be built on the site of the old cooling towers, which SAE is pleased to report have already been demolished in preparation for the construction phase. The project received planning permission in January 2024. The cooling tower site is large enough and has planning and grid connection rights for a BESS of up to 4-hour duration. For the UK government to achieve its Net Zero targets 4-hour plus duration BESS systems will become necessary in the future. This project is being developed with the ability to expand from the initially planned 2-hour duration, 240MWh capacity, up to 4-hour duration and 480MWh capacity.\n \nThe BESS project's target grid connection date is October 2026 and...