Low Carbon agrees 50MW storage deal with Gresham House Energy Storage Fund
View the full Gresham House Energy Storage Fund plc RNS announcement here.
Acquisition overview:
Gresham House Energy Storage Fund (GRID or the Fund) has acquired two operational battery storage facilities totalling 50MW from VLC Energy, a joint venture between Low Carbon and VPI Immingham a subsidiary of Vitol Group, for £29.2 million. The facilities comprise a 40MW facility at Glassenbury, Kent, and a 10MW facility at Cleator Moor, Cumbria that were commissioned in January 2018.
The use of batteries enhances National Grid’s ability to manage surges in supply from renewable energy sources, as well as surges in demand, and ultimately increase the Grid’s capacity to accommodate energy generated from renewables. Both the sites at Cleator and Glassenbury are capable of providing sub-second responses to surges in energy supply and demand, providing grid flexibility and electricity storage and are an integral part of building a smarter, cleaner and more flexible energy system for the UK.
Welcoming the deal, Ian Larivé, Investment Director at Low Carbon said:
“We are delighted to have worked with VPI Immingham through VLC Energy to transform the UK’s energy storage and distributed power generation market. Together, we developed two of the UK’s largest energy storage plants with a combined capacity of 50MW, representing a quarter of National Grid’s EFR capacity and supporting grid flexibility and resilience of low-carbon electricity generation. We are pleased to have completed the sale to Gresham House Energy Storage and look forward to their continued growth.”
ENDS
About VLC Energy
VLC Energy is a joint venture between Low Carbon, a renewable energy investment company, and VPI Immingham, owner of one of the largest combined heat and power plants in Europe and part of the Vitol Group.
VLC Energy was established to fund early stage energy storage and renewable energy projects in the UK, with the intention of accelerating the development of the UK’s renewable energy market and complementing VPI Immingham’s existing Combined Heat and Power generation capabilities.
About Low Carbon
Low Carbon is a privately-owned investment company committed to the development and operation of renewable energy power production. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar PV, wind, energy storage, waste to energy and energy efficiency. Low Carbon has a strong management team with a proven track record in the development, construction, financing and management of renewable energy assets. Low Carbon remains involved in the projects for the long term with a dedicated asset management team that manages assets on balance sheet and for third parties (unlisted and listed).
About VPI Immingham
VPI Immingham is a combined heat and power (CHP) plant near Immingham, on the South Bank of the river Humber. It is one of the largest CHP plants in Europe, capable of generating 1,240 MW – about 2.5% of UK peak electricity demand and up to 930 tonnes of steam per hour, which is used by nearby oil refineries to turn crude oil into products such as gasoline.
It is part of the Vitol Group, an energy and commodities company. Vitol’s primary business is the trading and distribution of energy products globally – it trades over 6mbpd of crude oil and products and, at any time, has 200 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including; circa 15.5mm3 of storage across six continents, 390kbpd of refining capacity and Shell-branded downstream businesses in 16 African countries, as well as Australia.
Revenues in 2015 were $168 billion.