Ampeak Energy (LSE:AMP) announced it has sold a 24.7% equity stake in AW1 Storage Holdings to JBR Energy Holdings for £7.8m.
JB Energy is a special purpose vehicle owned by directors of Jones Bros, the civil engineering firm acting as construction partner on the AW1 battery storage project at Ampeak's Uskmouth Sustainable Energy Park.
The £7.8m splits evenly: £3.9m for equity in the project's holding company and £3.9m to buy a shareholder loan to AW1 Energy Storage Limited.
Ampeak retains majority control with a 50.6% stake in ASH.
As a condition of the sale, agreed with Cardiff Capital Region under its loan arrangement, Ampeak has ringfenced half the proceeds for the AW1 expansion, which will double capacity from 240MWh to 480MWh.
That expansion is targeting financial close next year, after the first phase reaches commercial operation, and this pre-commitment covers a large portion of Ampeak's required equity contribution.
The deal also validates Ampeak's portfolio valuation assumption of £260,000 per megawatt.
Jones Bros remains principal contractor on AW1, delivering the balance of plant and electrical works, which the company says are on schedule and on budget.
"This investment is great for the project, great for our existing pipeline of projects, and great news for our shareholders as it will provide the funds to take our extensive knowledge and experience to develop new projects", said Graham Reid, Ampeak Energy's chief executive.
The Uskmouth site, a former power station being converted into one of the UK's largest battery storage hubs, has employed more than 500 contractors and staff at peak activity.
