OX2 has signed an agreement with energy company Flower to sell its 42MW Bredhälla energy storage facility in Sweden.
OX2 started construction of the site in the municipality of Uppvidinge in Southern Sweden, in late 2022. It consists of batteries utilizing lithium-ion technology with a total capacity of 42.5MW/42.5MWh spread across 20 containers.
Bredhälla will provide ancillary services to Svenska Kraftnät, the Swedish authority operating the transmission system, to ensure stability in the electricity grid. Additionally, it will also participate in wholesale markets by providing energy arbitrage. The transaction is conditional on approval from the Swedish authorities and Svenska Kraftnät and is expected to close during the second quarter of 2024.
Once commissioned, OX2 will be responsible for the technical and commercial management under a 10-year agreement.
“We are happy to announce the sale of Bredhälla, the first energy storage project that has been originated and developed by OX2,” said OX2 chief executive Paul Stormoen.
“We have over the past few years built up a strong portfolio within energy storage, which is a technology that will be an important enabler in the ongoing energy transition.”
Flower’s founder and chief executive John Diklev added: “We are thrilled to have reached an agreement for the Bredhälla project with OX2.
“This strategic addition to our portfolio allows us to develop new products and revenue streams for flexible assets, ultimately accelerating the energy transition. Furthermore, the acquisition underscores Flower’s position as a key player in the industry.”