Specifically, Drax Group has signed a ten-year tolling agreement with Fidra Energy. This collaborative effort will center around a 250MW, 250MWh battery energy storage system (BESS) based at West Burton, UK. Drax’s latest move is a strategic one to solidify its FlexGen portfolio. With that pipeline, they’re aiming to create a gigawatt-scale pipeline of battery storage opportunities. The contract allows Drax to retain all operational revenue, minus capacity market profits. This reinforces the company’s continuing growth in the rapidly expanding renewable energy sector.
The project has its grid connection secured, with Drax aiming for a commercial operation date of 2028. The entire contract depends on Fidra making a final investment decision by Q3 2026. Drax is even at the forefront on maximizing third-party assets through several market structures. This work dovetails nicely with their increasingly physically owned Battery Energy Storage System (BESS) assets.
Most recently, Drax’s acquisitions have shored up its market position against itself. In January 2026 Invinity acquired Flexitricity’s cloud-based optimization platform, aimed at accelerating the development of Invinity’s FlexGen business. Furthermore, in October 2025, Drax took three of their own BESS projects, totalling 260MW from Apatura. These moves reflect Drax’s commitment to creating opportunities for growth and value creation aligned with the UK’s energy needs.
Will Gardiner, CEO of Drax Group, emphasized the importance of this agreement:
“Our first BESS tolling agreement is an important step in our ambition for a gigawatt-scale pipeline of battery storage opportunities, alongside our recent acquisitions of Flexitricity and three battery storage developments.”
Gardiner highlighted the role of flexible generation technologies in supporting a secure and affordable energy system:
“Flexible generation technologies like battery storage will support a secure, affordable, and clean energy system for British homes and businesses.”
This makes the BESS at West Burton a clever move for Drax to increase its capacity without a huge outlay. This approach drives best-in-class cash flow generation and disciplined capital allocation. These contracts cement Drax’s harmful business model. It’s putting the company on course to fulfill its commitment to delivering industry-leading total returns for shareholders.