Energy storage operator BW ESS and energy storage site developer Penso Power have signed a seven-year tolling agreement with Shell for their Bramley BESS.
The deal is the first long-term tolling agreement for a single BESS asset in the UK, providing a new revenue structure template for future BESS opportunities across Europe.
Under the agreement, Shell will trade the BESS into a range of ancillary services and wholesale markets, paying BW ESS and Penso Power a fixed fee.
The 100MW/330 megawatt-hour (MWh) Bramley BESS site, currently under construction in Hampshire, UK, is also the first project in Europe to deploy Sungrow’s PowerTitan 2.0 liquid-cooled BESS system. The technology combines a 2.5MW power conversion system and a 5MWh battery into a single container, allowing the site to take up a relatively small area.
The site is to be commissioned in the fourth quarter of 2024 and is expected to be the longest duration BESS site in the UK.
Erik Strømsø, CEO of BW ESS, said: “We are thrilled to partner with the highly experienced energy trading team at Shell on this project… Bramley showcases our commitment to advancing energy storage solutions that set the bar for the wider market – while pioneering new models for project financing and operation.”
Richard Thwaites, CEO of Penso Power, said: “The contract we agreed with Shell on our Minety battery storage project back in 2020 became a template for the industry and this tolling agreement for Bramley breaks new ground. It represents a coming of age for the battery energy storage sector.”
In 2021, BW ESS and Penso Power announced a JV through which BW ESS funds the construction of Penso’s planned UK project pipeline, which exceeds three gigawatt-hours.
