The Anonymous Widower

Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?

In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I talked about a deal to invest £300 million into energy storage company; Highview Power.

These three paragraphs  are from the Highview Power news item, on which I based my post.

Highview Power has secured the backing of the UK Infrastructure Bank and the energy industry leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.

The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.

The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology. Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.

Note.

1. The UK Infrastructure Bank is a is a British state-owned development bank.
2. Centrica plc is an international energy and services company.
3. Rio Tinto is a leading global mining group that focuses on finding, mining and processing the Earth’s mineral resources.
4. The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm.
5. KIRKBI is the Kirk Kristiansen family’s private holding and investment company founded to build a sustainable future for the family ownership of the LEGO Group.
6. Mosaic Capital are an American investment firm.

With six partners, that is just £50 million per partner.

As that sum is very much small change for the likes of these guys and the question of taking an equity stake is not mentioned in Highview Power’s news item, it looks like this deal could be a try-before-you-buy deal with some of the partners or a simple investment with others.

Consider.

• Gresham House, Gore Street and others have proven that investing in lithium-ion batteries give a good return on investment.
• The Carrington long duration energy storage facility will be located near to the 884 MW gas-fired Carrington power station. I suspect that Centrica and Rio Tinto will be interested to see how the hybrid power-station performs.
• Could the Lego Group owners be looking at using solar power, wind power and a LDES to reduce the carbon footprint of their stores?

I would assume, that all the investors would get full details on the performance of the batteries.

Someone To Build The LDES

In Bilfinger Drives Highview Power’s Innovative Storage Project, Accelerating The Energy Transition, I describe how German company will build the Carrington LDES.

The Advantages Of An LDES over a BESS

This is only a short list, of the advantages I see.

• An LDES is easily recyclable.
• The LDES has less exotic materials.
• An LDES can be built from zero-carbon steel.
• Highview are claiming a 40-year life for their LDES.
• Highview is already talking about 200MW/2.5GWh LDES systems.
• Two 200MW/2.5GWh systems working together with a wind or solar farm, can replace a 400 MW gas- or coal-fired station.
• I suspect one of Highview’s LDES systems could be placed offshore, if needed.

I also believe that Highview’s LDES systems could be incorporated into complex chemical plants to increase the efficiency.

Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?

Everything now seems to be in place to build these LDES one after the other, to accelerate the energy transition.

With a good supply of orders and enough money to build each system, I cab see no reason, why several systems a month cannot be built and installed.

I have worked with companies like Goldman Sachs in the past, and I wouldn’t be surprised to find, that they have created the consortium, so that all members get the returns and recognition, they disserve.

Adding Lego Group To The Consortium Could Be A Masterstroke

The Lego Group has lots of stores and theme parks worldwide and a reputation for good design and environmental standards.

Last year, I wrote Bedford Depot’s Massive Solar Roof Helps Thameslink On Way To Net Zero. This was putting a solar roof on a rail depot, but surely buildings like this would be suitable for a Highview LDES.

June 23, 2024 - Posted by AnonW | Energy, Energy Storage | Bilfinger, Carrington LDES, Carrington Power Station, Centrica, Goldman Sachs, Good Design, Gore Street Energy Storage Fund, Gresham House, Highview Power, IKEA, Innovation, Lego, Long Duration Energy Storage (LDES), Mosaic Capital, Rio Tinto, UK Infrastructure Bank