Quantum Data Energy (MAST) has agreed in principle with Power Balancing Services to co-fund capital expenditure for its 100% owned Bordersley 5 megawatt (MW) flexible generation power project, as it moves the asset towards financial close, construction and commercial operations.
The investment agreement is in near final agreed form and is expected to be executed shortly, at which point the key terms will be announced.
The typical capital expenditure for a new-build 5 MW flexible generation power project is around £3.5 million. By partnering with Power Balancing Services, the company aims to limit dilution for existing shareholders while retaining a significant equity stake in an income-generating asset. Once operational, the project is expected to increase Quantum’s portfolio of megawatts in production and support revenue growth with limited capital outlay.
Meanwhile, preparations for construction are underway. Engineering, procurement and construction proposals have been received from leading contractors and key equipment availability has been confirmed. Grid and gas connection works are also in progress. The site is expected to reach full commercial production in the fourth quarter of 2026. As a reference point, Quantum’s Pyebridge flexible generation asset currently generates total revenues of around £290,000 per MW per annum.
In addition, the company has made significant progress on its proposed acquisition of a 7 MW 11 kV flexible generation power brownfield site in England. Technical and legal due diligence have essentially been completed and the purchase contract is in near final agreed form. The company is awaiting final confirmation from the Distribution Network Operator regarding the site’s grid connection date under National Energy System Operator grid connection reform, which is expected around the end of March 2026. Completion is anticipated shortly thereafter.
Quantum Data Energy’s Chief Executive Officer Pieter Krügel said: “We are delighted with the ongoing positive progress made to get our third flexgen asset constructed and into production. By applying capital discipline and efficiency, we limit QDE’s capital requirements and dilution of existing shareholders. We are also working on a number of additional near term growth opportunities, and we look forward to providing the market with further positive progress updates over the coming weeks and months.”
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Quantum is steadily executing its strategy of building a portfolio of flexible generation power assets while carefully managing shareholder dilution. The co-funding structure for Bordersley should allow the company to bring another asset into production without stretching its balance sheet.
If Bordersley reaches commercial operations in the fourth quarter of 2026 and performs in line with Pyebridge’s revenue profile, it would mark another step towards scaling recurring cash flow. Meanwhile, the 7 MW brownfield acquisition offers further near-term growth, subject to grid confirmation, reinforcing the group’s pipeline in a supportive UK flexibility market.