The acquisition of Triton Power is anticipated to strengthen Equinor and SSE Thermal’s portfolio of low carbon solutions in the UK
Norwegian state-owned energy company Equinor and British renewable power generator SSE Thermal are set to acquire Triton Power for a total consideration of £341m.
The two companies are acquiring the power generating company from Energy Capital Partners (ECP), a private equity firm focused on energy infrastructure.
The acquisition is expected to close in September this year, subject to approval from the UK National Security Filing and EU Merger Control.
Upon completion of the transaction, Equinor and SSE Thermal would jointly own the Triton Power through a 50:50 joint venture.
The acquisition of Triton Power is anticipated to strengthen Equinor and SSE Thermal’s portfolio of low carbon solutions in the UK.
Equinor midstream and processing marketing executive vice president Irene Rummelhoff said: “This acquisition together with SSE Thermal demonstrates our commitment to building a broad energy partnership with the UK.
“We will continue to work to supply the UK 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 acquisition of Triton Power includes the 1.2GW Saltend Power Station, a conventional combined cycle gas turbine (CCGT) that uses natural gas.
Equinor and SSE Thermal are preparing the power plant to use up to 30% hydrogen from 2027, with plans to eventually increase to 100% hydrogen operation.
The plant would use hydrogen from Equinor’s H2H Saltend hydrogen project, which converts natural gas into hydrogen by capturing more than 95% of its CO2 content.
With the acquisition, Equinor and SSE Thermal are enabled to help decarbonise power generation and produce low carbon hydrogen for industrial purposes.
In a separate development, Equinor has teamed up with Belgium-based natural gas transmission system operator Fluxys to develop a large-scale decarbonisation solution that connects Belgium with Norway.
Under the partnership, the two companies will develop a major infrastructure project for transporting captured CO2 from emitters to safe storage sites in the North Sea.
The project connects a 1,000 km CO2 export trunkline operated by Equinor, with an onshore CO2 transmission infrastructure built and operated by Fluxys.
It is currently in the feasibility stage, and an investment decision is expected by 2025.