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Drax Group has struck a deal to acquire battery energy storage investor Harmony Energy Income Trust PLC for just under £200 million in a high-stakes move to expand its energy storage portfolio. The agreement, which values HEIT at 88p per share, comes at a 5% premium over last week’s 84p bid from Foresight Group and a substantial 35% uplift from HEIT’s closing price of 65.2p on March 14, the day before Foresight's offer surfaced.
Initially, HEIT’s board had been exploring a direct asset sale, believing Foresight’s bid was the most favourable route for shareholders. However, Drax’s proposal is now the most substantial offer after further negotiations.
Drax believes this acquisition "represents a highly attractive opportunity", seamlessly aligning with its existing 'FlexGen' portfolio—a strategic move aimed at bolstering energy security and capitalizing on market volatility.
At the heart of HEIT’s value proposition lies its two-hour battery energy storage system (BESS), engineered for daily cycling—charging overnight when electricity prices dip and discharging during peak demand. This ability to exploit price spreads and respond to market fluctuations makes HEIT’s assets a powerful complement to Drax’s infrastructure.
Drax CEO Will Gardiner emphasized the significance of battery storage, stating it enables the company to "provide even more secure power to the country when it is needed most."
The integration plan is clear: pair HEIT’s two-hour BESS capabilities with Drax’s long-duration storage (over six hours) and flexible generation biomass burners. The result? A formidable 4.5GW of dispatchable power, reinforcing the UK’s energy grid when demand spikes.
"As more intermittent renewable energy connects to the country's network, more dispatchable and reliable generation will be required to help keep the lights on when the wind isn't blowing or the sun isn't shining," he said.
With the HEIT board fully behind the acquisition, its directors are set to recommend the deal unanimously to shareholders.
While Drax made waves in the energy sector, over in agribusiness, MP Evans Group PLC posted record financial results for 2024, marking a standout year in its palm oil operations.
Speaking to Proactive’s Stephen Gunnion, CEO Matthew Coulson highlighted a 66% surge in earnings per share, driven by robust operations despite weather-related setbacks in Indonesia. The company processed an impressive 1.6 million tonnes of crop, demonstrating resilience in a year when Indonesia’s national yield declined.
MP Evans continued aggressive plantation expansion, particularly in South Sumatra and East Kalimantan. The company is set to exceed 11,000 hectares of planted land at its Musi Rawas estate by early 2025, while development at its ABK site in East Kalimantan is ramping up.
Beyond growth, sustainability remains a core focus. In 2024, over 250,000 tonnes of certified sustainable palm oil were processed across its six mills, marking a significant environmental milestone.
Coulson expressed confidence in the company’s trajectory, noting that 2025 kicked off with strong pricing—averaging $870 per tonne in the first two months. With demand holding firm MP Evans is actively exploring acquisition opportunities, signalling a bold expansion strategy for the year ahead.
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