Norwegian energy giant Equinor has bought a stake in UK power systems and battery developer Noriker Power, to focus on engineering and project development of utility-scale storage and stability services. The value of the deal was not been disclosed.
In addition to the equity investment, Equinor and Noriker have agreed on a strategic co-operation which will grant Equinor the opportunity to “directly participate in projects being matured” by the British company.
Olav Kolbeinstveit, senior vice president for power and markets within Equinor Renewables, said battery storage is going to be a “key part of the energy transition as the world increases its share of intermittent renewable power”.
“Large-scale batteries can be charged when there is good access to low-cost electricity and discharged when supply is limited,” he said.
The company said in a statement: “Equinor envisages a solid opportunity to create profitable businesses by deploying batteries and storage assets to satisfy the growing need to stabilise power markets.
“It could complement its existing renewables portfolio in the UK by deploying batteries in proximity to its offshore wind assets to enhance returns.
“This would grant the ability to store electricity when the prices are low and sell it to the grid when prices are higher, improving returns from its renewable projects.”
Kolbeinstveit said: “The UK’s high degree of renewables make the country an interesting investment case for a battery storage business.”
Equinor is among a group of progressive European oil companies that are shifting capital expenditure toward renewables-led project portfolios, spearheading pioneering developments in the offshore wind market and investment in solar and energy storage, including the BatWind project in Scotland, which wired together a battery plant with the 30MW Hywind Scotland floating wind array in the North Sea.
· An earlier version of this article appeared on Recharge’s sister title Upstream
