LG Chem Power Inc.
UK Electricity Supply Commences Transformation through Multi-Million Dollar Investment in Batteries from VLC Energy
VLC Energy announced the development of two of the UK's largest energy storage plants, to be connected to the electricity network by year end. The newly created company is a joint venture between Low Carbon, a renewable energy investment company, and VPI Immingham, owner of one of the largest combined heat and power plants in Europe and part of the Vitol Group. VLC Energy was established to fund early stage energy storage and renewable energy projects in the UK, with the intention of accelerating the development of the UK's renewable energy market and complementing VPI Immingham's existing combined heat and power (CHP) generation capabilities.
The use of batteries will enhance National Grid's ability to manage surges in supply from renewable energy sources, as well as surges in demand, and ultimately increase the Grid's capacity to accommodate energy generated from renewables. They will also be an integral part of building a smarter, cleaner and more flexible energy system for the UK.
The first multi-million dollar projects to be developed by VLC Energy include two of the UK's largest energy storage plants in Cleator in Cumbria and Glassenbury in Kent. The energy storage plants were awarded contracts in the National Grid's Enhanced Frequency Response (EFR) tender process, as well as the Capacity Market Auction for delivery in 2020. The Cleator and Glassenbury sites will have a combined capacity of 50MW (35MWh) accounting for 25% of the total EFR contract capacity awarded by National Grid.
The battery projects will harness the latest Lithium-ion battery technology from LG Chem and sophisticated energy management systems from NEC Energy Solutions, Inc. to provide a vital balancing service to National Grid, with almost instantaneous responses of less than one second to surges in energy supply and demand. This rapid response service will provide significant cost savings to National Grid, with some estimates suggesting as much as $250 million (£200 million) in savings across all EFR contracts, by reducing wasted energy.
Justin Thesiger, Operations Director at Low Carbon, commenting on the selection of NEC Energy Solutions and LG Chem stated: "NEC Energy Solutions, in association with LG Chem, offered a comprehensive solution that matched our requirements for the delivery of our first two utility scale storage sites."
Low Carbon has a proven track record in the development, construction, financing and management of renewable energy assets, and was the only organization to be awarded two contracts in the National Grid EFR tender process. To date, the UK-based renewable energy investment company has enabled the deployment of more than $500 million (£400 million) into renewable energy projects and has experience with solar photovoltaic, battery storage, wind, combined heat and power, concentrated solar power and anaerobic digestion. The investor has developed enough renewable energy to power more than 100,000 homes and save more than 143,600 tons of CO2 annually.
Russell Hardy, Chairman, VPI Immingham and member of Vitol's executive committee, added, "We're pleased to be entering into an exclusive, strategic partnership with Low Carbon that will enable us to grow our investments in alternative energy in the UK. Batteries perfectly complement renewables and gas and together offer a cleaner, more efficient energy future for the UK."
Roy Bedlow, Chief Executive, Low Carbon, said, "Renewable energy is playing an increasingly important role in the UK's energy mix and as this role expands, the development of energy storage plants will be central to the future success of the UK's energy network. As a leading player in the renewable energy market, we're delighted to be partnering with Vitol to accelerate the development of new energy storage and renewable energy projects. Furthermore, by actively building a robust portfolio of renewable energy projects at scale, we are substantively challenging the causes of climate change, while helping to meet the growing demand for renewable energy in the UK."
About Low Carbon
Low Carbon is a privately owned investment company committed to the development and operation of renewable energy power production. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar, wind, anaerobic digestion, combined heat and power, concentrated solar power and energy storage. Low Carbon has a strong management team with a proven track record in the development, construction, financing and management of renewable energy assets. For UK solar alone, Low Carbon has funded more than 320MW. Low Carbon remains involved in the projects for the long term with a dedicated asset management team that manages assets on balance sheet and for third parties (unlisted and listed). www.lowcarbon.com
About VPI Immingham
VPI Immingham is a combined heat and power (CHP) plant near Immingham, on the South Bank of the river Humber. It is one of the largest CHP plants in Europe, capable of generating 1,240 MW - about 2.5% of UK peak electricity demand and up to 930 tonnes of steam per hour, which is used by nearby oil refineries to turn crude oil into products such as gasoline.
It is part of the Vitol Group, an energy and commodities company. Vitol's primary business is the trading and distribution of energy products globally - it trades over 6mbpd of crude oil and products and, at any time, has 200 ships transporting its cargoes.
Vitol's clients include national oil companies, multinationals, leading industrial and chemical companies and the world's largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including; circa 15.5mm3 of storage across six continents, 390kbpd of refining capacity and Shell-branded downstream businesses in 16 African countries, as well as Australia. Revenues in 2015 were $168 billion. www.vitol.com
About LG Chem
LG Chem Ltd. is one of the world's largest lithium-ion battery manufacturers with significant market share in consumer, automotive and stationary applications. The LG Chem Energy Solution division engineers and delivers energy storage systems for utility, C&I and residential applications. LG Chem Ltd. is a globally diversified chemical company that operates three main business units: Petrochemicals, IT & Electronic Materials, and Energy Solution. The company manufactures a wide range of products, from petrochemical goods to high-value added plastics, and extends its chemical expertise into high-tech areas such as electronic materials and rechargeable batteries. For more information, please visit www.lgchem.com www.lgesspartner.com
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