SAE Renewables (LON:SAE), a forward-thinking UK-based renewable energy company, has shared an encouraging set of H1 2024 results. Notably, the company reports a substantial increase in revenues, driven by the land sale for the Uskmouth Battery Energy Storage System (BESS) project and ongoing developments in its BESS and tidal power portfolios.
The primary contributor to SAE’s strong revenue of £12.0 million was the Uskmouth 230MW BESS land sale to Electric Land, generating £9.9 million in booked revenue. According to Daniel Slater, “SAE has received £7.0m of the £9.9m in cash, with the balance due between now and the end of Q1 2025 as the project progresses.” This strategic revenue generation has enabled SAE to report a robust EBITDA of £7.6 million for the first half of the year, with net cash flow increasing to £7.7 million by June 2024, underscoring the company’s financial strength as it continues developing its projects.
SAE’s renewable initiatives extend beyond immediate revenue generation to include substantial project progress across the BESS and tidal portfolios. The company’s flagship 6MW MeyGen tidal project has been a strong performer, with the cumulative power generation from MeyGen contributing 65% of the global tidal energy generation. A fourth turbine is scheduled to re-enter operation in Q4 2024, bolstering SAE’s position as a global leader in tidal energy production.
In addition to the Uskmouth project, SAE has advanced the 120MW AW1 BESS project, pursuing £65 million in project finance to support future development. The company’s strategy involves retaining a significant equity interest in this project, offering a unique opportunity to establish a successful financing model for future BESS developments. As Slater remarks, “Progression of AW1 through funding to FID would be an important proof of concept for SAE’s strategy of financing its BESS projects while maintaining a significant equity interest.”
SAE is actively positioning itself to benefit from forthcoming grid connection reform, aiming to move multiple projects to a ready-to-build status. The company’s strategic advantage lies in its access to prime land and project positioning, which could potentially fast-track grid connections and attract new funding opportunities. In addition, SAE’s potential growth in the BESS sector remains impressive, with projects such as AW2 (250MW), AW3 (349MW), and MeyBESS (207MW) actively progressing.
In Summary
SAE Renewables’ H1 2024 results highlight both strong revenue generation and significant project advancement across its BESS and tidal portfolios. As Slater notes, “We are pleased to see SAE both generating cash from the existing portfolio, covering ongoing G&A, while also making material progress on the project pipeline.” With plans for additional projects and continued financial stability, SAE appears poised to lead the way in renewable energy, particularly in the UK’s growing battery storage and tidal energy sectors. Investors and renewable energy enthusiasts alike will be watching SAE’s developments closely as it pursues a sustainable future in the energy landscape.
