Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF), the digital energy infrastructure company, has signed binding heads of terms to acquire a live grid connection site in Abu Dhabi for total of £2 million, subject to due diligence.
The Ghummud site comprises a 3.5 megavolt-ampere (MVA) energised grid connection with an active transformer and associated electrical infrastructure, providing approximately 2.975 megawatts (MW) of available power load.
The asset is currently non-operational and generates no revenue, consisting solely of the grid connection, related electrical infrastructure and land.
Active Energy intends to overlay its modular digital infrastructure onto the site following completion, offering contracted clients access to ultra-low-cost power under structured off-take agreements.
The equity component of £1 million will be satisfied through the issue of new ordinary shares at 0.11 pence each, a premium to both the company's 30-day volume-weighted average price of approximately 0.095 pence and its most recent closing price of 0.08 pence on 9 March 2026.
New shares issued as part of the acquisition will be subject to a 12-month lock-in period.
The deferred cash element comprises two instalments of £500,000 payable at six and 12 months post-completion, respectively, with net operating profit generated during the first year applied against the final payment.
Active Energy said the £2 million total consideration equates to approximately £570,000 per MW, which it estimates represents a saving of around 50% compared to equivalent new-build grid infrastructure costs in the UK, which typically range between £1 million and £1.5 million per MW.
The company said the Ghummud site has the potential to generate approximately $1.85 million per annum in gross revenue once fully operational, with estimated free cash flow of around $850,000 per annum at steady state, implying a three-year payback period.
Paul Elliott, chief executive of Active Energy, said the company was securing "scalable, energised capacity" and funding growth in a manner that protects its balance sheet while limiting shareholder dilution.