SSE Thermal and Equinor have reportedly agreed to acquire Triton Power from Energy Capital Partners for a consideration of £341 million.
The transaction will see the companies execute the next step in their collaboration to decarbonise the UK’s power system, with SSE Thermal and Equinor set to jointly own and run Triton Power between themselves.
Triton Power currently operates the 1.2 GW combined cycle gas turbine (CCGT) Saltend Power Station located in the Humber region in East Yorkshire.
The power station is a potential primary offtaker to Equinor’s H2H Saltend hydrogen production project, with H2H expected to kick off the wider decarbonisation of the Humber sector as part of the East Coast Cluster, one of the country’s first carbon capture, usage and storage clusters.
Humber is currently the UK’s most carbon-intensive industrial area. The operation aims to partially abate the region by 2027 through blending up to 30% of low-carbon hydrogen. The project will work towards 100% abatement by 2035.
Triton Power’s portfolio also includes the 140 MW open cycle gas turbine (OCGT) Indian Queens Power Station in Cornwall and the decommissioned CCGT Deeside Power Station in north Wales, which provides carbon-free inertia to the system.
The agreement will reportedly see Triton Power used as a platform by the two companies to develop additional low-carbon projects to support the transition to net zero and progress the decarbonisation work already completed by Triton.
The deal is scheduled to close in September, subject to UK National Security Filing and EU Merger Control.
“Flexible energy will be absolutely essential as renewable energy scales up over the coming years, providing vital back-up while protecting security of supply,” said SSE Thermal managing director Catherine Raw.
“But the real prize will be how we decarbonise that flexible energy over the longer term, and we are excited, in particular, by the hydrogen and carbon capture opportunities at Saltend. Together with Equinor, we will explore every avenue to decarbonise Saltend and create new opportunities at other assets so they can play a continued role in a net zero future.”
“We welcome our new colleagues and I look forward to working with them all as they play a critical role over the years ahead.”