Energy trading company Danske Commodities has signed a three-year optimisation agreement for the 35MW Welkin Mill battery energy storage system (BESS) owned by Equinor, a Norwegian oil and gas giant.
Being constructed by Noriker Power, a UK developer and operator of BESS in which Equinor acquired a 45% stake in late 2021, the two-hour BESS will connect to the distribution network operated by Electricity North West (ENWL) and is expected to be operational in 2024 and will be located in Manchester.
“Building on Danske Commodities’ experience from short-term power trading, we will utilise our fully automated algorithmic setup to maximise returns across wholesale and ancillary services markets,” said Anders Kring, vice-president, head of European power trading at Danske Commodities.
“We have an ambition to become the leading battery optimiser through automated trading, supporting our parent company Equinor as well as third-party asset owners and developers. This is part of our strategy to further expand our asset portfolio and support the energy transition.”
Last year, Danske Commodities signed its first optimisation agreement in the UK for the 25MW/50MWh two-hour duration battery storage asset Blandford Road, also owned by Equinor.
The BESS is connected to the Southern Electric Power Distribution (SEPD) network and comprises around 150 lithium-ion battery units.
With two UK battery storages in its portfolio, Danske Commodities said it is gearing up to support its owner Equinor’s strategic ambitions to create a profitable renewables business by integrating battery storage assets in its portfolio in select power markets.