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The Norwegian energy giant’s move strengthens commitment to UK energy security and net-zero transition.
Norwegian energy giant Statkraft has agreed to acquire the Red John Pumped Storage Hydro Scheme from Intelligent Land Investments (ILI).
The 450MW hydro project, situated around 14km south-west of Inverness, Scotland, secured consent from Scottish Government ministers in June 2021. Pending a final investment decision, the project aims to contribute to Scotland’s renewable energy targets and enhance UK energy security.
Statkraft, the largest producer of electricity from hydropower in Europe, views the acquisition as a key component in aiding the UK’s transition to net zero. The hydro scheme plans to capture surplus renewable energy to store for future use, providing security of supply as the country’s electricity network shifts from fossil fuels.
The project is also expected to create numerous jobs during its construction and provide permanent employment opportunities once operational. As part of the deal, Stratkraft will also operate a park and ride scheme at Caledonian Stadium’s north car park during construction, generating regular income for the club. In response to their main shirt sponsor ILI’s deal with Statkraft, Inverness Caledonian Thistle chairman Ross Morrison commented: “It’s a big boost financially for us.”
Scottish clean energy development company ILI, having first conceived the project in 2015, has taken the project from initial conception to development-ready ahead of the deal. Chief executive of ILI Mark Wilson said: “From its inception until now, Red John has been eight years in getting to this stage and has required the expertise and dedication of a fantastic team… Entrusting Red John to Statkraft reflects our confidence in their capability to realise its potential and rekindle Scotland’s hydro legacy.”
While Statkraft’s UK managing director Kevin O’Donovan expressed his enthusiasm for the acquisition and the project’s potential to support the UK’s renewable sector, he noted that “there needs to be an appropriate support mechanism in place, so we are now looking to the UK Government to provide the certainty that will allow us to proceed with confidence”. Wilson echoed this sentiment, stating: “We encourage the UK Government to provide the support mechanisms now for long-duration storage and strive to become a world leader in achieving net zero.”
Founded in Norway more than 125 years ago, Statkraft is not only a major player in the hydropower sector but has been strengthening its position as a major international renewable energy provider in recent years. Recently, the company agreed to acquire Spanish energy company Enerfin, adding wind and solar capacity to its portfolio.
The company already boasts a considerable presence in Scotland, including a headquarters in Glasgow and the Keith Greener Grid Park in Moray. This acquisition further solidifies its commitment to the region, with other planned or under-construction projects representing at least £2bn ($2.54bn) of potential future capital investment in Scotland. |
