Equinor to buy 45% of UK battery developer Noriker Power
Front-of-meter battery storage site developed by Noriker. (Photo: Noriker Power Ltd.)
Norwegian energy company Equinor ASA (NYSE:EQNR) today said it has agreed to acquire a 45% stake in UK battery storage developer Noriker Power Ltd with an option to buy the entire company at a later stage.
The deal between the parties also includes a strategic cooperation which will allow Equinor to take part in projects being progressed by the Gloucester-based company. Noriker, which has so far developed and built over 250 MW of storage in the UK, has a near-term pipeline of over 500 MW in battery storage, hybrid energy and stability service projects, according to the announcement.
Through the move, Equinor wants to take advantage of profitable opportunities created by the growing need to stabilise power markets. It could also deploy batteries close to its UK offshore wind assets to improve returns.
As part of the deal, Equinor will buy the 15% interest in Noriker currently held together by Gresham House Plc (LON:GHE) and Gresham House Energy Storage Fund Plc (LON:GRID).
“Battery storage is going to be a key part of the energy transition as the world increases its share of intermittent renewable power,” said Olav Kolbeinstveit, senior vice president for power and markets within Renewables at Equinor.
According to him, “[t]he UK’s high degree of renewables make the country an interesting investment case for a battery storage business.”
Financial details were not provided. Noriker will use the equity investment from Equinor to beef up its project development platform.