FGEN Sells Lunanhead Stake and Energises Sandridge Battery Project

Foresight Environmental Infrastructure Limited (LON:FGEN) announced on Wednesday the sale of its 50% stake in the Lunanhead battery project in Scotland, while confirming that its Sandridge development in Wiltshire has now been energised.

FGEN shares are down around 0.8% in early trading, currently trading at around 80p per share. The stock has risen over 9% this year, but is down more than 16% in the last 12 months.

Lunanhead, a 50MW lithium-ion battery energy storage system (BESS) located in Perthshire, was jointly owned with Foresight Solar Fund.

FGEN said it has exchanged contracts to sell its shareholding to a third-party buyer at a price consistent with the asset’s 30 June 2025 carrying value. The transaction, representing less than 0.2% of FGEN’s total portfolio value, is expected to be completed later this quarter.

The company said the decision was aligned with its capital allocation strategy, with the Board and Investment Manager weighing the merits of developing the asset against alternative uses of capital, including share buybacks and debt repayment.

FGEN noted that a sale would deliver “the best outcome for shareholders”. Options for the Clayfords BESS project, in which FGEN also holds a 50% stake, remain under review.

Meanwhile, the Sandridge BESS project has reached a key milestone, entering its final commissioning and testing phase after being energised.

FGEN stated that commercial operations are anticipated shortly. Once fully operational, Sandridge will become FGEN’s second live battery project, following West Gourdie.

FGEN said the Sandridge facility will enhance the integration of renewable energy into the grid, improve system stability, and deliver cost benefits for consumers and businesses.