SIMEC Atlantis Energy Ltd on Tuesday said it has signed a £40 million contract for a battery storage project at Uskmouth.

Shares in the Edinburgh-based tidal and hydro energy producer were 30% higher at 2.68 pence each in London on Tuesday afternoon.

SIMEC said that it has entered into an agreement with Energy Optimisation Solutions and Quinbrook Infrastructure Partners via its portfolio company Uskmouth Energy Storage Ltd. It is contracted to deliver a 230 megawatt/460 megawatt hour battery energy storage system to the Uskmouth site in Wales.

SIMEC added that it will earn around £40 million in revenue from the project over 30 years, of which £11 million will be paid within the next 18 months.

The project will develop the site into a sustainable energy park, which is marked as ‘another key step in SIMEC delivering value for its shareholders.’

Construction is expected to take 18 months. The project, which will be wholly owned and operated by Uskmouth Energy, is expected to become operational towards the end of 2024.

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