Ameresco strikes $249 million deal with Atlantic Green to build one of UK’s largest battery storage project

Leading cleantech integrator, Ameresco on Thursday (May 23) announced that it has entered in a $249 million contract and long-term service agreement with Atlantic Green to build one of the UK's largest battery energy storage project.

Ameresco along with Envision Energy have been selected to build the Cellarhead battery energy storage system (BESS) in the UK, a 300-megawatt (MW) BESS with a maximum energy capacity of 624 MWh.

"Energy storage is one of the key technologies required to achieve the UK's net zero targets. Atlantic Green's strong company leadership and robust track record of developing similar projects makes them an excellent partner in this endeavor," said Mark Apsey, MBE, Senior Vice President of UK Operations at Ameresco.

"Together, Ameresco and Atlantic Green will help support the UK's progress towards increased power autonomy and achieving net-zero carbon emissions by 2050."

The Cellarhead BESS project will be powered by Envision's battery energy storage system and will be connected to National Grid's Cellarhead sub-station. As part of the BESS project Ameresco entered into an EPC and O&M contract including battery supply, balance of plant, warranty, and availability guarantees. The EPC full wrap price is $249 million (196.5 million GBP). Envision Energy, Tier 1 OEM will provide the BESS and associated services, as well as the equipment warranties.

"This project exemplifies our commitment to pushing the boundaries of battery storage technology, a cornerstone of sustainable energy systems," said Kane Xu, Global VP of Envision Energy.

"Partnering with Atlantic Green and Ameresco allows us to demonstrate the pivotal role that advanced battery solutions play in enhancing energy security and enabling a seamless transition to renewable energy sources. We are proud to contribute our cutting-edge technology to this landmark UK initiative."

Atlantic Green invests, develops, and operates grid-scale standalone battery energy storage systems across the UK. It aims to develop a 2 GW capacity of battery energy storage to enable UK's clean energy transition and the Cellarhead project marks a critical milestone in its broader strategy.

"We believe that a continuous development of battery energy storage is a vital step in the UK's journey to achieving net-zero carbon emissions, and we are excited to team up with Ameresco to bring this vision to life," said Nick Bradford, Managing Director of Atlantic Green.

"Since our founding, Atlantic Green has consistently prioritized finding strategic ways to leverage our battery storage assets with the wider community and we are eager to answer the rising demand for battery storage with this new project with such a level of energy capacity, to really make the impact on the UK electricity system that is much needed."

The construction of the Cellarhead BESS project is scheduled to begin in H1 2024. According to Ameresco, the partners expect to complete the BESS and secure grid connection by the middle of 2026. Following completion, Atlantic Green will own and operate the BESS as an energy storage asset.