Innogy, the UK energy company formed in October through the demerger of National Power, has sold the second of its Regenesys fuel cell based electricity storage plants. In a collaboration with Tennessee Valley Authority, the largest US power provider, Innogy is to build a Regenesys plant in Mississippi at a cost of $25 million, and ready for operation in 2003. It will be the first of its kind in the USA, and only the second in the world following the installation at Little Barford, Cambridgeshire. The technology allows the storage of electricity in fuel cells based on alkali metal salts as electrolytes; TVA regard the development as leading edge technology and are keen to import it as a way of coping with peak electricity demand.

TVA’s R & D division, the Public Power Institute, will work closely with Innogy to develop the fuel cell plant. Construction should start in spring 2001 if the necessary permission are granted.

l Back in the UK Innogy has been considering a takeover bid for the US owned £420 rated supply business of Yorkshire Electricity in a first move to increase its share of the UK gas and electricity market since its demerger from National Power in October.