UK-based thermal power company SSE Thermal and Norwegian petrol firm Equinor have agreed to acquire Triton Power Holdings from Energy Capital Partners for £341m ($413m).
The deal amount will be shared equally by both companies.
Based in Hull, UK, Triton Power operates Saltend Power Station, a 1.2GW combined-cycle gas turbine (CCGT) facility and combined heat and power (CHP) power station located on East Yorkshire’s Humber Estuary.
Its portfolio also includes the Indian Queens Power Station, a 140MW open-cycle gas turbine facility located in Cornwall, and the Deeside Power Station, a decommissioned CCGT power plant in north Wales.
Under the terms of the transaction, Triton Power’s 82 employees will be transferred to SSE Thermal and Equinor.
With this deal, the two companies aim to support power system decarbonisation in the UK while ensuring a secured power supply and grid stability via flexible power generation in the shorter term.
Subject to approval from UK National Security Filing and EU Merger Control, the deal is expected to close in September this year.
Once it has closed, SSE Thermal and Equinor will jointly own and operate Triton Power’s portfolio and use it as a platform to develop low-carbon projects to support the UK’s transition to net-zero.
SSE Thermal managing director Catherine Raw said: “Flexible energy will be absolutely essential as renewable energy scales up over the coming years, providing vital back-up while protecting security of supply.
“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.”
In May last year, SSE Thermal and Equinor agreed to build a gas-fired power plant with carbon capture technology in Scotland.