Statkraft has agreed to acquire the 450MW Red John Pumped Storage Hydro Scheme from Intelligent Land Investments Group (ILI).
The scheme (pictured), first conceived in 2015, was granted consent by Scottish Government ministers in June 2021.
The acquisition demonstrates Statkraft’s latest commitment to helping Scotland meet its renewable energy targets and strengthening UK energy security, the developer said.
Located on a site around 14km south-west of Inverness, it will capture excess renewable energy, and store it until needed, helping provide security of supply as Great Britain’s electricity network shifts away from fossil fuels.
Pending a final investment decision, this significant UK renewable energy infrastructure project will support hundreds of jobs during construction and provide locally based permanent jobs once operational.
Founded in Norway more than 125 years ago, Statkraft is the largest producer of electricity from hydropower in Europe.
The company already has a number of pumped storage plants in operation in both Norway and Germany, alongside over 350 other hydropower plants, including Rheidol, near Aberystwyth, in Wales.
Statkraft, a developer and operator of technologies such as wind, solar, grid stability, hydropower, battery storage, and green hydrogen, has a strong presence in Scotland, including a headquarters in Glasgow, Keith Greener Grid Park in Moray, and operates several wind farms.
Other projects in planning or under construction together represent at least £2bn of potential future capital investment in Scotland.
Intelligent Land Investments Group (ILI) is a leading clean energy development company based in Hamilton, Scotland.
They have taken the Red John Pumped Storage Hydro project from initial conception to being development ready.
Kevin O’Donovan, Statkraft’s UK managing director, said: “Statkraft is fully committed to supporting the UK in strengthening its energy security and helping to secure the economic benefits of the net zero transition.
“The acquisition of this significant pumped hydro storage scheme will play a key role in that.
“But there needs to be an appropriate support mechanism in place, so we’re now looking to the UK Government to provide the certainty that will allow us to proceed with confidence.”
Mark Wilson, chief executive of ILI, said: “From its inception until now, Red John has been eight years in getting to this stage and has required the expertise and dedication of a fantastic team.
“I would especially like to thank the ILI team, AECOM, TLT, PwC, and everyone who has helped in reaching this exciting milestone.
“Entrusting Red John to Statkraft reflects our confidence in their capability to realise its potential and rekindle Scotland’s hydro legacy.
“As we stand on the threshold of a greener future where long-duration storage like Red John is paramount, we believe the UK can lead in renewable energy paired with energy storage as a keystone for the energy transition.
“There is over 5GW of pumped storage hydro projects in the UK pipeline which will inject billions into the economy and create over 15,000 new jobs.
“We encourage the UK Government to provide the support mechanisms now for long duration storage and strive to become a world leader in achieving net-zero.”