Biomass company Drax bids for Harmony’s UK battery fleet

English biomass, gas, and hydro power company Drax has gazumped the potential acquisition of British BESS developer Harmony Energy Income Trust (HEIT) plc by London-based investor Foresight group plc.

The RNS news service of the London Stock Exchange reported a GBP 191 million bid by renewables investor Foresight for HEIT’s BESS portfolio last Monday but that offer, which secured the support of the HEIT board, has now been bettered by Drax.

North Yorkshire-based Drax, which also sells its biomass pellets for sustainable aviation fuel applications, has offered HEIT shareholders GBP 0.88 per share in a GBP 199.9 million offer for the battery portfolio, which includes a 35 MW/70 MWh asset in the village of Drax, according to the HEIT website.

The new offer, reported today, marks a 5% increase on Foresight’s GBP 0.84/share offer and has been accepted by the HEIT board.

HEIT shares closed at GBP 0.652 per share on March 14, the day before Foresight’s offer was made.

Vote looms

A shareholder vote on the offer will need to secure the support of holders of at least 75% of HEIT’s stock to seal the sale of a 395.4 MW/790.8 MWh BESS portfolio featuring seven English and one Scottish site.

The English BESS listed on the Harmony website comprise the Drax facility plus a 99 MW/198 MWh site in Surrey; a 98 MW/196 MWh battery in Cottingham, East Yorkshire; a 49.9 MW/99.8 MWh facility in County Durham; a 33 MW/66 MW BESS in Wormald Green, Yorkshire; a 20 MW/40 MWh location in Farnham, Surrey; and an 11 MW/22 MWh site in Broadditch, Kent. The portfolio is completed by a 49.5 MW/99 MW project in Lochgelly, in the Scottish historic county of Fife.

Drax Group CEO Will Gardiner, in a quote reported by RNS today, said, “The acquisition is a significant investment in growing our ‘FlexGen’ portfolio, supporting UK energy security and delivering a clean power system. The Drax directors believe that adding battery storage to our FlexGen portfolio enables us to provide even more secure power to the country when it is needed. In combination with our long duration [energy] storage, flexible generation, demand-side response capabilities and renewable generation from biomass, we will be able to supply 4.5 GW of dispatchable generation to meet demand.

“As more intermittent renewable energy connects to the country’s network, more dispatchable and reliable generation will be required to help keep the lights on when the wind isn’t blowing or the sun isn’t shining.”

RNS reported Drax, which had revenue of GBP 6.16 billion and adjusted EBITDA of GBP 1.06 billion in 2024, is also developing two open-cycle gas plants in England and one in Wales.