Yahoo Finance British Gas owner Centrica helps back £300m UK energy first
Centrica, the owner of British Gas, has helped raised £300m for the first commercial-scale liquid air energy storage (LAES) plant in the UK.
Highview Power’s funding round was also led by the UK Infrastructure Bank alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.
The money will aid the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology.
Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours.
Construction will begin on the site immediately with the facility operational in early 2026. It is expected to support over 700 jobs in construction and the supply chain.
Highview Power will now also start planning on the next four larger scale 2.5 GWh facilities – with a total anticipated investment of £3bn.
Highview Power has developed its LAES technology in the UK over the last 17 years. The technology can store renewable energy for up to several weeks, longer than battery technologies.
The company added that its technology will also provide stability services to the National Grid, “which will allow for the long-term replacement of fossil fuel-based power plants for system support”.
‘UKIB and British Gas owner Centrica have backed out ambitious plan’
Richard Butland, co-founder and CEO of Highview Power, said: “There is no energy transition without storage.
“The UK’s investment in world-leading offshore wind and renewables requires a national long duration energy storage programme to capture excess wind and support the grids transformation.
“UKIB and Centrica and our partners have today backed our ambitious plan to bring renewable energy storage into the UK economy at scale, liberating the potential of what is both the greenest and by far the cheapest energy source for the UK economy and provide energy security.
“Our first project in Carrington will be the foundation for our full scale roll-out in the UK and expansion with partners to share this British technology internationally.”
Chris O’Shea, group chief executive of British Gas owner Centrica, added: “The energy transition is an opportunity that could transform lives across the UK.
“But with a changing energy mix, and more intermittency from renewables, we have to explore new, innovative ways to store energy so our customers have electricity available when the wind doesn’t blow and the sun doesn’t shine. Low carbon storage is an essential part of the solution when looking at how we manage peaks in demand.
“That’s why I’m delighted that Centrica is investing in Highview Power. Not only are we bringing capital to the table to support rollout and expansion, but we’ll be also sharing our expertise on the energy transition and power storage.
“Through partnerships like this we can manage the challenges net zero might present while providing cleaner, greener power to customers.”
Andy Burnham wants Manchester to be a ‘leader in the green transition’
Mayor of Greater Manchester Andy Burnham said: “My vision is for Greater Manchester to be a leader in the green transition – and Highview Power’s decision to build one of the world’s largest long duration energy storage facilities at Carrington is a huge boost for the region.
“This new plant will deliver renewable energy to homes and business across our region and bring world-leading technology, jobs, skills and investment to Greater Manchester. I’m delighted to welcome Highview Power.”
