Wednesday, August 10, 2022

SSE Thermal and Equinor to acquire Triton Power in acceleration of low-carbon ambitions

SSE Thermal and Equinor have entered into an agreement to acquire Triton Power Holdings Ltd from Energy Capital Partners for a total consideration of £341m shared equally between the partners.

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.

Triton Power operates Saltend Power Station which is 1.2GW CCGT (Combined Cycle Gas Turbine) and CHP (Combined Heat & Power) power station located on the north of the Humber Estuary in East Yorkshire.

Saltend Power Station is a potential primary offtaker to Equinor’s H2H Saltend hydrogen production project. H2H Saltend is expected to kick-start the wider decarbonisation of the Humber region as part of the East Coast Cluster, one of the UK’s first carbon capture, usage and storage clusters.

In addition, the portfolio includes Indian Queens Power Station, a 140MW OCGT (Open Cycle Gas Turbine) in Cornwall, and Deeside Power Station, a decommissioned CCGT in north Wales which provides carbon-free inertia to the system.

Following completion of the transaction, SSE Thermal and Equinor will jointly own and operate Triton Power and 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.

The transaction underscores SSE Thermal and Equinor’s shared ambition to decarbonise the Humber, which is the UK’s most carbon-intensive industrial region, as well as the UK more widely. Initial steps to decarbonise Saltend Power Station are already underway, targeting partial abatement by 2027 through blending up to 30% of low-carbon hydrogen. In addition, carbon capture provides an additional valuable option for the site. SSE Thermal and Equinor will continue to work towards 100% abatement.

The transaction is expected to complete in September subject to UK National Security Filing and EU Merger Control.

The 82 existing employees of Triton Power will be employed by the joint venture in accordance with TUPE procedure.

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