SSE Thermal and Equinor to acquire Triton Power

SSE Thermal and Equinor have entered into an agreement to acquire Triton Power Holdings Ltd from Energy Capital Partners for a total consideration of £341 million shared equally between the partners.

Triton Power operates Saltend Power Station which is 1.2 GW CCGT (Combined Cycle Gas Turbine) and CHP (Combined Heat & Power) power station located in the north of the Humber Estuary in East Yorkshire.

Saltend Power Station is a potential primary offtaker to Equinor’s H2H Saltend hydrogen production project. H2H Saltend is expected to kick-start the wider decarbonisation of the Humber region as part of the East Coast Cluster, one of the UK’s first carbon capture, usage and storage clusters.

Following completion of the transaction, SSE Thermal and Equinor will jointly own and operate Triton Power and focus on using the Triton Power portfolio as a platform to develop more low-carbon projects to support the transition to net-zero, building on the decarbonisation work already carried out by Triton.

The transaction underscores SSE Thermal and Equinor’s shared ambition to decarbonise the Humber, which is the UK’s most carbon-intensive industrial region, as well as the UK more widely. Initial steps to decarbonise Saltend Power Station are already underway, targeting partial abatement by 2027 through blending up to 30% of low-carbon hydrogen. In addition, carbon capture provides an additional valuable option for the site. SSE Thermal and Equinor will continue to work towards 100% abatement.

The 82 existing employees will continue to be employed by Triton Power. In line with just transition principles, the joint venture is committed to transitioning the assets for the net-zero world through responsible ownership and operation, and in consultation with the local workforce and representatives.

This acquisition strengthens SSE Thermal and Equinor’s portfolio of joint projects, which bring together expertise in power, natural gas, hydrogen and carbon capture and storage. This portfolio includes three development projects within the Humber region:

• Keadby 3 Carbon Capture Power Station, which could be the UK’s first flexible power station equipped with carbon capture.
• Keadby Hydrogen Power Station, which could be one of the world’s first 100% hydrogen-fuelled power stations.
• Aldbrough Hydrogen Storage, located in East Yorkshire, which could be one of the world’s largest hydrogen storage facilities.

The two companies are also developing Peterhead Carbon Capture Power Station, situated on the Aberdeenshire coast in Scotland and there are further opportunities for hydrogen blending across SSE’s generation portfolio, including at Keadby 2.

Aligned with UK Government policy to deliver Carbon Capture and Storage clusters and a hydrogen economy, the assets provide low-carbon opportunities in the latter half of this decade. This acquisition will form part of SSE’s Net Zero Acceleration Programme (NZAP), which sets out plans to invest £12.5bn in the UK’s electricity infrastructure by 2026, including any further capital incurred to decarbonise the existing activities.

The acquisition is also wholly aligned to SSE’s net-zero pathway, reflecting the Group’s wider ambition to invest in projects with a low-carbon focus, and bolsters its options to deliver the more than 3GW of low-carbon flexible thermal and distributed generation targeted for FY31. SSE’s NZAP targets and EPS guidance remain unchanged following this acquisition.

Catherine Raw, Managing Director of SSE Thermal, said, “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.”

Irene Rummelhoff, Executive Vice President Marketing, Midstream & Processing at Equinor, said, “This acquisition together with SSE Thermal demonstrates our commitment to building a broad energy partnership with the UK. We will continue to work to supply the UK market with reliable energy and to reduce emissions by offering a transition to hydrogen through our hydrogen project H2H Saltend. Contributing to flexible power supplies with low CO2 emissions to support weather-dependent renewable energy is essential to ensure energy security through the energy transition.”

Mick Farr, Chief Executive, Triton Power, said, “This agreement will allow the Triton Power assets to continue to provide critical grid services and flexible power generation while building on the progress already made on decarbonisation.”

Rahman D’Argenio, Partner, Energy Capital Partners, said, “Over the course of our ownership, ECP is proud of the progress we and the Triton team have made in repositioning the portfolio for a rapidly decarbonising world. With the redevelopment of Deeside into a carbon-neutral provider of inertia completed; the H2H Saltend project underway; and this transition to experienced and similarly aligned new owners in SSE Thermal and Equinor.”