23rd Apr 2024 11:26
(Alliance News) - Kistos Holdings PLC on Tuesday said it had completed its acquisition of the gas storage arm of EDF Energy Ltd.
The London-based investor in low carbon energy used existing cash resources to purchase 100% of the company for a total consideration of GBP25 million.
Following this transaction, Kistos has diversified its portfolio and entered into the upstream gas storage sector after assuming ownership of two UK onshore facilities.
One of these assets, Hill Top Farm, has a working gas capacity of 17.8 million therms accounting for 3.1% of the UK's total available onshore storage capacity.
An ongoing programme is working towards increasing this to 21.2 million therms in the short-term.
Furthermore, Hill Top can deliver up to 11% of the UK's flexible daily gas capacity if called upon.
The second asset, Hole House, is not operational at the moment following the suspension of activities in 2018.
However, Kistos will now begin reactivating the site which will enable the company to increase its proportion of UK gas storage.
Executive Chair Andrew Austin said: "Over the longer term, we will also be evaluating our options to further expand operations via other energy storage sources such as compressed air or hydrogen."
As the UK increases the amount of energy generated from intermittent renewable source such as wind and solar, the need for sufficient energy storage will become increasingly important in order to keep the system balanced.
The company therefore believes this provides the basis for gas storage assets to become a "key pillar" of the energy transition going forward.
Kistos shares were up 2.4% to 169.00 pence each in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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