A £341 million deal for the gas-fired power station at Saltend has been agreed, with Equinor and SSE Thermal uniting - kickstarting work on building the Humber's hydrogen economy.
The energy giants are advancing their role in the cleaning up the 海角视频's most carbon-intensive industrial cluster, with the buyout of the 1.2GW plant east of Hull.
It will see preparations begin for the use of hydrogen, produced from natural gas by Equinor, on a neighbouring site soon to be realised.
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Triton Power, the business under which it operates, is currently owned by US-based Energy Capital Partners, a power-focused infrastructure investor. Also included in the deal is Indian Queens Power Station, a 140MW open cycle gas turbine plant in Cornwall, and Deeside Power Station, a decommissioned site that provides inertia and reactive power to the grid from North Wales.
It is the latest joint venture from the British and Norwegian multinationals, with developments at Keadby on the South Bank and plans for hydrogen storage at Aldbrough, East Yorkshire.
Irene Rummelhoff, Equinor's executive vice president for marketing, midstream and processing, said: “This acquisition together with SSE Thermal demonstrates our commitment to building a broad energy partnership with the 海角视频. We will continue to work to supply the 海角视频 market with reliable energy and to reduce emissions by offering a transition to hydrogen through our hydrogen project H2H Saltend. Contributing to flexible power supplies with low CO2 emissions to support weather-dependent renewable energy is essential to ensure energy security through the energy transition.”
The conventional combined cycle gas turbine generator has three units. It currently provides electricity during periods of low output from solar and wind, while feeding PX Group's Saltend Chemicals Park - the former BP facility now home to an increasing number of process-based operations.
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The plan is for it to be transformed to use 30 per cent hydrogen from 2027, with an ambition to eventually increase to 100 percent hydrogen operation.
Saltend Power Station is seen as the anchor customer for the H2H Saltend project, itself a key feature of the wider Zero Carbon Humber dual pipeline plan for hydrogen supply and carbon capture to the region.
Catherine Raw, chief executive of SSE Thermal, said: “Flexible energy will be crucial as renewable energy scales up further over the coming years, providing important back-up and improving security of supply. But the real gain will be how we contribute to decarbonisation in the longer term, and we are particularly excited about the possibilities for hydrogen and carbon capture in Saltend.
“Together with Equinor, we will explore all avenues to decarbonise Saltend and create new opportunities for other businesses so that they can operate in a future with net zero emissions.”
The deal, which will see 82 staff transfer, is expected to close in September, and Equinor and SSE Thermal will own it in a 50/50 joint venture. It is subject to approval from the 海角视频 National Security Filing and EU Merger Control.
Mick Farr, chief executive of Triton Power, said: “This agreement will allow the Triton Power assets to continue to provide critical grid services and flexible power generation while building on the progress already made on decarbonisation. I have been particularly impressed by the vision and commitment shown by SSE Thermal and Equinor in our discussions and believe they have the capabilities and knowledge required to allow our pipeline of clean energy projects to proceed at pace."
Saltend, brought forward by BP and US generator Entergy, was commissioned in 1999, and has changed hands several times.
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Rahman D’Argenio, partner at ECP, added: “Over the course of our ownership, ECP is proud of the progress we and the Triton team have made in re-positioning the portfolio for a rapidly decarbonising world. With the H2H Saltend project underway; and this transition to experienced and similarly aligned new owners in SSE Thermal and Equinor, we believe the business will continue to serve as a model for environmentally responsible power generation amidst the ongoing energy transition.”
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