Wattstor and LSN Diffusion strike long-term renewable electricity supply deal to support export growth and energy resilience
- Wattstor to deliver long-term price certainty for LSN Diffusion in South Wales in support of their business growth.
- 1.3 MW of solar and a 5 MWh battery system to generate around 25% of the site’s electricity needs.
- The supply contract unlocks new European commercial opportunities by helping LSN Diffusion meet customer sustainability requirements and long-term operating cost certainty.
Wattstor has announced a new partnership with LSN Diffusion, a specialist manufacturer of metal powders and one of Wales’ biggest exporters, to deliver a major on-site solar and battery storage project at its South Wales facility, as part of a long-term electricity supply agreement.
The manufacturer will also benefit from Wattstor’s renewable energy tariff, Price Protect, which will give it increased long-term certainty with its energy costs. As part of the venture, Wattstor will finance and install 1.3MW of solar generation across the LSN rooftop at the company’s base in Cilyrychen, Llandybie, alongside a 5MWh battery energy storage system.
Once operational, the system will generate around 25% of the company’s electricity demand on-site, with scope for future expansion. It will also help LSN Diffusion cut exposure to volatile energy costs while unlocking new commercial opportunities.
The investment with Wattstor is already supporting LSN Diffusion’s growth in European markets by enabling the company to meet increasingly stringent sustainability requirements from customers. Wattstor was advised by Freeths on the legal aspects of the transaction, with the team led by Corporate Partner Clare King.
In addition, the fast-growing business would previously have faced significant costs to expand. As a growing energy-intensive company, it has a limited current grid supply. Expansion, such as installing a new furnace, would result in an estimated £1million cost to upgrade its grid connection as well as potentially higher standing charges. Wattstor’s investment in on-site generation and storage means LSN Diffusion will not be totally reliant on its grid supply, with its on-site system allowing it to avoid unnecessary costs and support its growth ambitions.
Kevin Ball, Chief Commercial Officer at Wattstor, said:
“Manufacturers are having to manage two pressures at once: volatile energy costs and rising expectations from customers on sustainability. Projects like this show that those challenges can be addressed together. Through our investment in on-site generation and storage, LSN Diffusion is not only reducing its exposure to the grid but also strengthening its position in competitive export markets. We believe this model will become increasingly important for industrial businesses looking to stay resilient and win new business.”
The partnership comes at a time when UK manufacturers continue to face energy price volatility and rising costs, alongside ongoing uncertainty around future industrial support schemes. As an energy-intensive business, LSN Diffusion has helped secure its commercial future and energy certainty.
Philip Allnatt, Managing Director at LSN Diffusion commented:
“This partnership with Wattstor provides greater certainty over one of our significant operating costs and addresses the sustainability expectations of our international customers. As an export-led manufacturer, that combination is essential to our future growth. The project allows us to expand production independent of grid constraints or significant infrastructure costs.”
About LSN Diffusion Ltd:
LSN Diffusion is a specialist metallurgical manufacturer based in Cilyrychen, Llandybie, South Wales. It manufactures nickel-, cobalt-, and iron-based powders for customers worldwide, including a cohort of blue-chip businesses. Its products are used worldwide in sectors including defence, aerospace, automotive, waste-to-energy, oil and gas, dentistry and additive manufacturing. Nearly 90% of production is exported, making LSN Diffusion one of Wales’ leading exporters. The company employs more than 100 staff.
About Wattstor:
Wattstor is a next-generation energy company providing commercial and industrial customers with low-cost renewable electricity. Through innovative products such as Price Protect, Wattstor helps organisations achieve long-term energy cost certainty, reduce carbon footprints, and unlock the full value of decentralised energy assets.
