Equinor, an energy company specializing in providing oil, gas, wind energy, and solar power energy, has signed an agreement with Noriker Power Limited, a battery storage developer in the UK focusing on the engineering and project development of utility-scale storage and stability services.
The agreement includes the acquisition of a 45% stake in Noriker, with an option to acquire the whole company later.
In addition to the equity investment, Equinor and Noriker have agreed on strategic cooperation, which will allow Equinor to participate in projects being developed by Noriker directly.
Noriker Power has developed and constructed over 250 MW of battery storage across the UK and has a current 500 MW pipeline in battery storage, hybrid energy, and stability service projects. Noriker will use the investment to enhance its project development platform, including engineering development, control systems innovation, and algorithmic optimization.
“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. This will enable businesses to establish profitable services around the need to balance markets, stabilize the electricity grid and improve the security of supply. The UK’s high degree of renewables make the country an interesting investment case for a battery storage business,” said Olav Kolbeinstveit, senior vice president for power and markets within Renewables at Equinor.
As part of the agreement, Equinor will buy the shares currently held by Gresham House and Gresham House Energy Storage Fund (together owning 15% of Noriker).
According to Mercom’s 9M and Q3 2021 Funding and M&A Report for Storage, Grid, and Efficiency, in 9M 2021, there were 15 Battery Storage M&A transactions compared to 11 transactions in 9M 2020.