Aggreko in £40m swoop for energy systems specialist
● Battery storage key as market turns ‘decarbonised and decentralised’
Temporary power provider Aggreko has snapped up a “smart energy” firm focused on battery storage in a £40 million deal.
Glasgow-based Aggreko said the purchase of Younicos, which is based in Germany and the United States, would help to strengthen its position in global energy and tap new markets.
The Scottish company said Younicos was a leader in developing and installing integrated energy systems.
It added that energy markets “continue to evolve and is in line with our strategy to invest in technology in order to reduce the cost of energy for our customers”.
Aggreko said that the control of power and storage was key in maintaining stability and reliability of supplies amid the rising use of renewable energy.
It noted that Younicos, founded in 2005, delivers “scalable” smart energy sys“delighted” tems that integrate battery storage – technology that Aggreko said was increasingly critical in an energy market that was “decarbonising and becoming more decentralised and digital”.
Aggreko chief executive Chris Weston said: “As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.
“Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy.”
Younicos has more than 200MW of installed storage systems. Its group chief executive Stephen Prince will remain with the business after the transaction and report directly to Weston.
The firm generated revenues of £7m last year and made an operating loss of £15m. Aggreko expects the business to remain in the red short-term.
Prince said the company was to be joining with a market leading power provider in Aggreko.
He added: “Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future.”
Prince said that the integration and operation of “multiple distributed energy sources” will be necessary to give energy systems more stability at a lower cost and with less environmental impact.
Yesterday’s deal comes weeks after the Scottish group bought an Indonesian rival in a $32.8m (£25.3m) deal. Power rental company KBT has about 200 megawatts (MW) of diesel and gas contracts on hire with state-owned utility PLN, more than doubling the 140MW that Aggreko already has contracted with the electricity provider.
In March, Aggreko jolted the market with a profit alert sparked by the repricing of legacy’ contracts in Argentina. The group has also seen the low oil price dent a number of its key markets, notably North America.