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Drax Group PLC on Thursday said it has inked a tolling agreement with Zenobe Coalburn Ltd for 200 megawatts of new battery energy storage system capacity. The Selby, North Yorkshire-based electricity generator said the agreement covers 200 megawatts of capacity with four-hour storage duration at Coalburn, Scotland. Drax said the deal provides it with full operational control and dispatch rights, and noted no upfront capital cost. It explained that construction, maintenance, and availability risks sit with Zenobe. The company is targeting a commercial operation date in 2026, and noted expected returns ‘significantly ahead’ of its weighted average cost of capital. Shares in Drax were down 1.8% at 863.50 pence on Thursday afternoon in London. ‘Flexible Generation technologies like battery storage support a secure, affordable and clean energy system for British homes and businesses. This new Bess tolling agreement, alongside our other recent tolling agreement and acquisitions of Flexitricity and three battery storage developments, shows we are building momentum in delivering a gigawatt-scale pipeline of battery storage opportunities,’ said Chief Executive Will Gardiner. ‘We are focused on allocating capital to growth and value creation opportunities across our FlexGen portfolio that are aligned with the UK’s energy needs, underpinned by strong cash generation and attractive returns for shareholders.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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