**Summary**
Drax Group PLC announced a 15-year tolling agreement with Zenobē Coalburn Limited for a 200MW (800MWh) Battery Energy Storage System (BESS) at Coalburn, Scotland. The agreement, with no upfront capital cost for Drax, includes full operational control and dispatch rights, while Zenobē retains responsibility for construction, maintenance, and availability. The project targets a Commercial Operation Date (COD) in 2028 and is expected to deliver returns significantly above Draxs Weighted Average Cost of Capital (WACC). This deal aligns with Draxs FlexGen strategy, enhancing its short-duration and fast-response capabilities, and supports UK energy objectives of security and decarbonization.
Combined with recent acquisitions and agreements, Drax now has 710MW (1.8GWh) of BESS capacity under tolling contracts and physical assets, with a growing pipeline of opportunities. CEO Will Gardiner emphasized the strategic importance of flexible generation technologies like battery storage in delivering a secure, affordable, and clean energy system for the UK. The agreement is subject to Zenobēs final investment decision and achieving commercial operations.