Equinor, the Norwegian oil and gas conglomerate, has purchased a 45 percent investment in Noriker Power, a UK utility-scale energy storage and stability services company.
In addition to the equity investment, the two businesses have agreed on a strategic collaboration, which will allow Equinor to actively engage in projects that Noriker is developing.
Equinor claimed that there is a potential to build successful enterprises by deploying battery and storage assets to address the rising stabilising demands in the power sector. Furthermore, putting batteries near its present portfolio of offshore wind assets in the UK might boost profits.
“Large-scale batteries may be charged when there is decent access to low-cost energy and drained when supply is constrained,” explained Olav Kolbeinstveit, Equinor’s senior vice president for power and markets in Renewables.
“This will enable firms to develop profitable services centered on the need to balance markets, stabilize the power grid, and increase supply security.” The UK’s large proportion of renewables makes it an appealing investment case for a battery storage company.”
Noriker Power has designed and built approximately 250MW of battery storage across the UK, and has a pipeline of over 500MW of battery storage, hybrid energy, and stability service projects in the near future.
The investment from Equinor will be used to improve the company’s project development platform, which is based in Gloucester. Engineering development, control system innovation, and algorithmic optimisation will all be part of this.
Equinor will acquire the shares now held by Gresham House Plc and its London Stock Exchange-listed Gresham House Energy Storage Fund Plc, which control 15% of Noriker. Gresham House first purchased a 5% investment in the battery business in August 2019.
Gresham House also bought Noriker’s 30MW Byers Brae project in April for £15.6 million (US$20.6 million), plus up to £0.35 million in delayed contingent compensation.