Abu Dhabi-based renewable energy company Masdar has acquired UK-based battery energy storage system (BESS) developer Arlington Energy, it announced on Tuesday.
The acquisition will enable Masdar to expand its presence in the UK and European renewable energy markets and support the countries’ net-zero objectives. The acquisition will also support Masdar’ offshore wind and renewables investment strategy.
Additionally, the acquisition will enable the development, construction, operational management, and financing of BESS projects under one Masdar-Arlington platform, the company said in a statement.
“Masdar and Arlington Energy share a long-standing belief that greater investment in energy storage is critical if countries are to expand their renewable energy portfolios and achieve their net-zero ambitions,” said Mohamed Jameel Al Ramahi, chief executive officer of Masdar.
“By working together, we will be able to provide a more resilient and flexible energy resource, helping to accelerate the UK and other European countries’ clean energy transitions, and supporting our efforts in expanding our offshore wind and broader renewables portfolio.”
London-based Arlington Energy develops, operates and finances flexible energy solutions, and has taken over 170 megawatts (MW) of assets through to operation in the past two years, the statement added.
“Partnering with Masdar allows us to accelerate our BESS rollout in the UK and will make us the leading platform for energy storage,” added Matthew Clare, co-founder and director of Arlington Energy.
Europe could need as much as 200 gigawatts (GWs) of storage capacity by 2030 to meet its renewable energy targets, according to a recent industry report. Meanwhile, the UK alone may need as much as 50 GW of storage capacity by 2050, to achieve its target of net-zero carbon emissions by 2050, according to the National Grid.
Alongside this acquisition, Masdar said that it intends to increase its investment in offshore wind and other renewables projects in new and existing markets, including the UK.
Masdar has stakes in London Array, one of the world’s largest offshore wind farms; the Dudgeon offshore wind farm off the coast of Norfolk; and Hywind Scotland, the world’s first commercial-scale floating wind farm. It aims to reach 100GW in total capacity by 2030.
In December 2021, the UAE government announced that Abu Dhabi-based companies TAQA, ADNOC, and Mubadala are to join forces as shareholders in Masdar.
Read: Abu Dhabi’s ADNOC, TAQA, Mubadala enter agreements to acquire Masdar stakes