SIMEC Atlantis Energy Ltd (AIM:SAE, OTC:SMAYF) shares jumped 14% after the company secured a 15-year contract to supply power to the National Grid.
The deal, won in the latest T-4 Capacity Market Auction, covers SAE’s 120MW AW1 Battery Storage project and guarantees a fixed payment of £60 per kilowatt per year.
The Capacity Market is designed to ensure a reliable electricity supply by paying providers to be on standby when demand surges.
For SAE, a tidal power specialist, this contract adds a crucial revenue stream as it moves towards financial close on its flagship battery storage project at the Uskmouth Sustainable Energy Park.
The results are still subject to approval by the Energy Security and Net Zero Secretary, expected by March 24.
In mid-morning trading, the shares were up 0.16p at 2.21p.