Vitol Launches JV for UK Battery Project

Posted by Joseph Keefe

Vitol owned VPI Immingham and renewable investment
fund Low Carbon Ltd have launched a joint venture to invest up to
250 million pounds ($311 million) in energy storage and
distributed power generation in Britain, the companies said on
Tuesday.

The VLC Energy joint venture will initially build two battery
storage plants, one in Cleator, Cumbria and one in Glassenbury,
Kent, to be connected to Britain's electricity grid by the end of
the year.

The two plants have already won contracts with Britain's National
Grid to provide super fast balancing services, called enhanced
frequency response (EFR), under a first auction aimed at battery
storage providers held last year.

Renewable electricity production has risen strongly in Britain
over the last few years, with wind farms contributing more than
10 percent of the country's electricity in 2016, increasing the
need for storage technology to help the grid operator better
balance electricity supplies and demand.

"Renewable energy is playing an increasingly important role in
the UK's energy mix and as this role expands, the development of
energy storage plants will be central to the future success of
the UK's energy network," said Roy Bedlow, chief executive at Low
Carbon.

The two new plants will have a combined capacity of 50 megawatts
(MW), and account for a quarter of the capacity of the EFR
contracts awarded last year.

Vitol's VPI Immingham in the north of England, is Europe's
largest combined heat and power unit and is capable of generating
up to 1.2 gigawatts (GW) of electricity or around 2.5 percent of
Britain's demand.

Reporting By Susanna Twidale

Feb 28, 2017

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