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(Alliance News) - SSE PLC's energy company SSE Thermal Energy Operations Ltd and Norway's state owned Equinor ASA on Tuesday said they are buying UK power-generating firm Triton Power Holdings Ltd from Energy Capital Partners Ltd.
Under the GBP341 million joint venture deal, the firms will own and run on a 50/50 basis, Perth-based SSE explained.
The companies' joint venture will focus on decarbonisation. "The transaction represents another step forward for the two companies' existing collaboration, supporting the long-term decarbonisation of the UK's power system whilst contributing to security of supply and grid stability through flexible power generation in the shorter term," SSE said.
The transaction includes three plants, one of which is the 1.2 gigawatt Saltend - a combined cycle gas turbine and combined heat and power station - located on the north of the Humber Estuary in East Yorkshire, which the firms aim to decarbonise. "Following the acquisition, SSE Thermal and Equinor will focus on using the Triton Power portfolio as a platform to develop more low-carbon projects to support the transition to net zero, building on the decarbonisation work already carried out by Triton," SSE added.
Catherine Raw, managing director of SSE Thermal, said: "Flexible energy will be absolutely essential as renewable energy scales up over the coming years, providing vital back-up while protecting security of supply. But the real prize will be how we decarbonise that flexible energy over the longer term, and we are excited, in particular, by the hydrogen and carbon capture opportunities at Saltend. Together with Equinor, we will explore every avenue to decarbonise Saltend and create new opportunities at other assets so they can play a continued role in a net zero future."
Further, the joint portfolio has three development projects in the Humber region, including "Keadby Hydrogen Power Station, which could be one of the world's first 100% hydrogen-fuelled power stations," SSE explained.
"SSE Thermal and Equinor will continue to work towards 100% abatement by 2035," it continued. SSE expects the transaction, subject to approval from UK National Security Filing, and EU Merger Control, to complete in September. Triton Power's 82 employees will be employed by the joint venture.
SSE PLC founded Reading-based SSE Thermal in 2020 to focus on renewable and net-zero energy. It employs 600 people in the UK and Ireland.
SSE shares were 0.2% higher at 1,654.50 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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