Kistos has announced the completion of the acquisition of 100% of the share capital of EDF Energy (Gas Storage) from EDF Energy (Thermal Generation), further to its announcement on 20 February 2024. The assets acquired comprise of two gas storage facilities onshore in the UK, Hill Top Farm and Hole House Farm, for a total consideration of £25 million (from existing cash resources).
- Following the approval of Kistos by the government under the National Security and Investment Act (NSIA), the transaction marks Kistos' entry into the gas storage sector providing business diversity to its upstream portfolio.
- Hill Top's working gas capacity is 17.8 million therms, with an ongoing programme to increase this volume to 21.2 million therms in the short term.
- Hill Top currently accounts for 3.1% of the UK's total available onshore gas storage capacity and, due to the fast cycle nature of the facility, can deliver up to 11% of the UK's flexible daily gas capacity if called upon.
- The Hole House facility, at which operations have been suspended since 2018, provides an option to increase the Company's proportion of the UK's total onshore gas storage materially with reactivation. Delivering a plan to get these facilities back online is a priority post completion.
- As the UK generates increasing amounts of electricity from intermittent renewable sources, the times when fast-cycle storage assets are required to balance the system are also set to increase. This provides the basis for gas storage assets to be a key pillar of the energy transition.
- Both facilities have the potential to be repurposed for future energy storage uses, including the storage of compressed air or hydrogen, and concept studies are underway.
- Kistos has assumed operatorship of both sites.
Commenting on the acquisition, Andrew Austin, Kistos' Executive Chairman, said:
'We look forward to working with the existing team with a view to maximising the value-accretive opportunities these gas storage facilities present, establishing Kistos' presence across the energy value chain with a foothold in the midstream market. Over the longer term, we will also be evaluating our options to further expand operations via other energy storage sources such as compressed air or hydrogen.'
|Source: Kistos
