Equinor has bought a stake in battery storage developer Noriker Power to focus on engineering and project development of utility scale storage and stability services.

The value of the deal between the Norwegian giant and the UK firm has not been disclosed.

Are you missing out on ACCELERATE?
Gain valuable insight into the global oil and gas industry's energy transition from ACCELERATE, the free weekly newsletter from Upstream and Recharge.

In addition to the equity investment, Equinor and Noriker have agreed on a strategic co-operation which will grant Equinor the opportunity to directly participate in projects being matured by Noriker.

Olav Kolbeinstveit, senior vice president for power and markets within renewables at Equinor said battery storage is going to be a key part of the energy transition as the world increases its share of intermittent renewable power.

“Large-scale batteries can be charged when there is good access to low-cost electricity and discharged when supply is limited,” he said.

Equinor envisages a solid opportunity to create profitable businesses by deploying batteries and storage assets to satisfy the growing need to stabilise power markets.

It could complement its existing renewables portfolio in the UK by deploying batteries in proximity to its offshore wind assets to enhance returns.

This would grant the ability to store electricity when the prices are low and sell it to the grid when prices are higher, improving returns from its renewable projects.

“The UK’s high degree of renewables make the country an interesting investment case for a battery storage business,” Kolbeinstveit said.

Noriker Power, headquartered in Gloucester, has developed and constructed over 250 megawatts of battery storage across the UK and has a near-term pipeline in excess of 500 MW in battery storage, hybrid energy and stability service projects.

According to Equinor, Noriker will use the investment to enhance its project development platform, including engineering development, control-systems innovation and algorithmic optimisation.