Equinor has signed an agreement to acquire 45% of UK battery developer Noriker Power.
The deal, which includes an option to take 100% control at a later date, will see the Norwegian player “directly participate” in the developer’s projects.
As part of the agreement, Equinor will also buy the shares currently held by another investor, Gresham House Plc and Gresham House Energy Storage Fund Plc, which together own 15%.
Noriker Power, headquartered in Gloucester, has developed and constructed over 250MW of battery storage across the UK and has a near term pipeline in excess of 500MW in battery storage, hybrid energy and stability service projects.
It will use the investment from Equinor to enhance its project development platform, including engineering development, control systems innovation and algorithmic optimisation.
Equinor said it sees a solid opportunity to create profitable businesses by deploying batteries and storage assets to satisfy the growing need to stabilise power markets.
In addition, the offshore wind developer believes it could complement its existing renewables portfolio in the UK by deploying batteries in proximity of its offshore wind assets to enhance returns.
“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.
“Large-scale batteries can be charged when there is good access to low-cost electricity and discharged when supply is limited.
“This will enable businesses to establish profitable services around the need to balance markets, stabilise the electricity grid and improve security of supply. The UK’s high degree of renewables make the country an interesting investment case for a battery storage business.”