SAE Renewables, a UK-based renewable energy company, has released promising results for the first half of 2024. This period has seen a remarkable boost in revenue, thanks largely to a land sale tied to the Uskmouth Battery Energy Storage System (BESS) project, as well as progress across its broader BESS and tidal energy initiatives.
A significant portion of SAE’s revenue, amounting to £12 million, stemmed from the sale of land for the Uskmouth 230MW BESS project to Electric Land. This transaction alone generated £9.9 million in revenue, of which £7 million has already been received in cash, with the remainder due by early 2025. According to Daniel Slater, the sale represents a strategic move that strengthens SAE’s cash flow and aligns with the company’s objectives, leading to an EBITDA of £7.6 million and a net cash flow of £7.7 million as of June 2024. These figures underscore SAE’s financial stability as it continues to expand its project base.
SAE’s progress is not limited to immediate revenue from sales. The company is advancing major projects within its BESS and tidal energy portfolios, including its 6MW MeyGen tidal project. This flagship project, which contributes 65% of global tidal energy, is set to add a fourth turbine by the end of 2024, reinforcing SAE’s leadership in tidal energy.
Beyond the Uskmouth project, SAE has also made headway on its 120MW AW1 BESS project. In an effort to secure £65 million in financing, SAE plans to maintain a substantial equity share in this venture. Slater notes that achieving final investment decision (FID) status on the AW1 project would validate SAE’s approach to financing its BESS developments while retaining significant ownership stakes, potentially setting a model for future projects.
In the face of upcoming grid connection reforms, SAE aims to expedite its projects to a ready-to-build stage. Its access to strategically located land could fast-track grid connections, positioning SAE advantageously for new funding opportunities. SAE’s BESS pipeline looks particularly robust, with projects such as AW2 (250MW), AW3 (349MW), and MeyBESS (207MW) steadily progressing, presenting a promising outlook for growth within the battery storage sector.
SAE Renewables’ H1 2024 performance not only demonstrates solid revenue gains but also substantial advancements across its energy portfolios. Slater expressed satisfaction with SAE’s current ability to generate cash flow from its operational portfolio while simultaneously advancing its pipeline of projects. With a focus on expanding both battery storage and tidal energy capacity, SAE is poised to lead the way in the UK’s renewable energy market. Investors and renewable energy advocates are likely to follow SAE’s journey closely as it continues its pursuit of sustainable energy solutions.
SAE’s strategic direction reflects its strong financial position and forward-thinking approach to renewable energy, with a focus on both immediate returns and long-term project development.
