Street Calls of the Week
LONDON - Active Energy Group Plc (AIM:AEG) has signed heads of terms with Fonmon Castle Ltd to develop a 150MW battery energy storage system in the Vale of Glamorgan, according to a press release statement issued Friday.
Under the agreement, Fonmon Castle will provide approximately 10 acres of land on a 30-year lease for the construction of the battery facility. Active Energy will invest £40,000 to advance the project’s development, including applications to the District Network Operator and planning consent processes.
The heads of terms will remain valid for 18 months while Active Energy supports the planning and development phases. Upon securing planning consent and commencement of the lease, Active Energy’s initial investment will be reimbursed, and the company will receive 5% of the first year’s rent.
The proposed battery storage facility is expected to generate an annual rent of £300,000 payable to Fonmon Castle Ltd, with final commercial terms still subject to agreement.
Paul Elliott, CEO of Active Energy Group, described the Fonmon project as "a flagship opportunity for AEG to deliver meaningful energy infrastructure that supports the UK’s low-carbon future."
The battery storage system aims to support the UK’s transition to clean energy and strengthen national energy security, according to the company. Bruton Knowles is acting as agent for both parties in the transaction.
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