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Gateway battery energy storage system in Essex

Gateway will be one of the largest battery energy storage systems (BESS) in the world, with a capacity of 320 megawatts for a 2-hour discharge duration with zero greenhouse gas emissions.

InterGen is seeking a co-investor to take up to 49% equity in the project. A financial investor is potentially more suited, given InterGen’s desire to oversee construction and then operate and trade the asset.

InterGen is running an invitation to tender (ITT) process to select its partner equipment supplier that’s due to conclude in Q4 2021. The project has its grid connection from National Grid and its Generation Licence from Ofgem. It will be operational by 2025.

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Location:

DP World London Gateway in Thurrock, Essex

Investment type:

Capital investment - energy and infrastructure

Sector:

(Sustainable infrastructure, Energy storage)

Project promoter:

InterGen

Scale:

£170 million

Time to Final Investment Decision (FID):

1-2 years

Hamira Khan

Senior Investment Manager

Contact the opportunity lead

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Sector and market opportunity

When completed, the project will operate in the UK’s electricity wholesale and balancing markets. It will also provide reserve and ancillary services to the National Grid, offering flexible and dynamic services to help ensure electrical grid stability.

Location

The project is located by the London Gateway Port on the Thames Estuary in south-east England, where there is strong demand for electricity.

Connectivity

The scheme is located about 30 miles to the east of London and is easily reached by all major London airports, train and road links.

Local talent and skills

The location is close to InterGen’s existing Combined Cycle Gas Turbine (CCGT) Coryton station, providing resource for operation and maintenance. It will also benefit from InterGen’s well-established trading capability.

Further details

The project is at an advanced stage of development and is being further de-risked. Project life is expected to be around 20 years, with repowering potential to extend.

Environmental, social and governance (ESG) highlights

BESS projects make an important contribution to the UK’s target of reaching net zero emissions by 2050. They are zero carbon and provide or store power almost instantaneously. As such they provide flexibility and a range of ancillary and system support services to help balance and manage the electricity system. The need for these services will services will grow as renewable capacity increases.

Promoters and partnerships

Active in the UK since the 1990s, InterGen is an independent power generator with a track record of developing, constructing, and operating large-scale power generation projects. InterGen has invested over £2 billion to develop and construct a flexible power station portfolio of 3 combined cycle gas turbines (CCGT) and one open-cycle gas turbine, totalling 2.8GW.

The Gateway Project represents a key stage of InterGen’s strategy to diversify and become a leading energy storage system operator in the UK. Its ambition is to have 3GW of projects in commercial operation by 2030 – with the potential to grow subject to further market needs.

InterGen has already identified further locations for grid-scale projects, including at Spalding in Lincolnshire. While the Gateway project is expected to be taken forward on a standalone basis, both the Gateway and Spalding projects (and other opportunities) could be progressed with the right partner as InterGen recognises that some investors prefer scale.

Local and national government support

The development will have potential freeport benefits owing to its location at London Gateway.

Other opportunities

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The government is identifying new projects across the whole of the UK. Investors who are interested in our projects can find out more by contacting us.

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