JLEN will invest around £21.2m over the next 12-15 months
JLEN (LON:JLEN), the environmental infrastructure fund, confirmed on Wednesday that it has acquired a 100% stake in Gigabox South Road Limited (GSRL).
JLEN, the FTSE 250 company, has said it will invest around £21.2m over the next 12-15 months as a part of the acquisition of GSRL.
GSRL holds the development rights to construct the West Gourdie project, a 50MW lithium-ion battery energy storage plant based in Dundee, UK. It is anticipated the project will reach energisation and begin commercial operations in March 2022.
JLEN said that storage projects provide vital support to the National Grid, by reducing imbalances and improving its ability to harness a greater level of intermittent renewables on the system.
The West Gourdie project will connect to the Scottish Hydro Electric Power Distribution plc’s network and has a 49.9MW import and export connection.
This acquisition represents JLEN’s third investment into battery storage systems, adding to the two co-located batteries that the company owns as part of its run-of-river hydro portfolio.
JLEN’s share price is up by 0.43% on early Monday morning trading to 114.5p per share, recovering to its level at the beginning go 2021.
Richard Morse, Chairman of JLEN, committed on his company’s acquisition:
“We are pleased to announce the further expansion of our interests in the energy storage market with our first grid-scale battery project. We believe that plants such as this one, will play an important role in the decarbonisation agenda by providing balancing support to the local network and allowing for greater levels of renewable generation on the network.”
“This investment should offer additional returns over time as it is structured to take advantage of increased market volatility as intermittent renewable generation facilities play a greater part in supplying green electricity to the nation.”