Kistos set to buy EDF’s UK gas storage arm for £25m
Kistos is set to buy the gas storage arm of EDF Energy, the British subsidiary of the French nuclear power giant, for £25m.
The purchase will see two onshore gas storage facilities in the UK change hands, Hill Top Farm and Hole House Farm, both located close to Warmingham in Cheshire.
The company was set up to acquire and manage companies in the energy sector engaging in the energy transition trend.
Hill Top has a gas capacity of 17.8 million therms, which is 3.1 per cent of the UK’s total available onshore gas storage capacity but can deliver up to 11 per cent of the UK’s flexible daily gas capacity if called upon.
Meanwhile, Hole House is currently non-operational, though it was in use between 2001 and 2018.
Kistos has previously stated its plans to use the acquisitions to help with the energy transition and has said it will put in place an agreement to work alongside a partner to trade the gas.
The firm added that both facilities have the potential to be repurposed for future energy storage uses, including the storage of compressed air or hydrogen, with concept studies already underway.
Kistos chair Andrew Austin, said: “Our entry into the gas storage market marks another advancement in our growth strategy to expand the business through value-accretive acquisitions.
“Not only do these assets complement our upstream UK assets, but they also diversify our presence across the energy value chain with a foothold in the midstream market.
“We look forward to benefitting from the experience of the existing team at these sites as we assume operatorship. Their specialist expertise will be highly valuable as we seek to maximise the potential of the assets and evaluate all options to expand operations via other energy storage sources such as compressed air or hydrogen. In essence, Kistos will own one of the most flexible ‘batteries’ in the UK, vital for energy security and supply.”