Centrica invests in renewable energy storage capabilities to boost UK’s energy security and accelerate transition to net zero

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Centrica plc announces a strategic partnership and £70 million investment in Highview Power and its first clean energy storage project in Carrington, Manchester.

Centrica’s investment will be a key part of a £300 million funding package to develop the first commercial-scale Liquid Air Energy Storage plant in the UK, which will boost the UK’s energy security and accelerate the transition to net zero. 

The investment, which forms part of our plans to invest between £600m - £800m a year until 2028, will be structured as £25m of convertible debt at Highview Enterprises Limited, being the Highview Power holding company and £45m of debt funding at the Carrington Liquid Air Energy Storage project, phased over the project construction. The investment delivers several benefits to Centrica:

• Robust standalone returns aligned with Centrica’s capital allocation framework and returns thresholds
• Aligned to our green-focused investment programme targeting assets which complement our existing capabilities, provide balance to the portfolio, and align to the needs of the energy transition
• Includes rights to equity participation and energy optimisation from future projects in Highview’s £9 billion project pipeline

Carrington will be constructed using Highview Power’s proprietary Liquid Air Energy Storage technology, with a storage capacity of 300 MWh and output power of 50 MW. Once operational in 2026, it will be one of the world’s largest Liquid Air Energy Storage facilities.

Highview Power has developed its Liquid Air Energy Storage technology in the UK over the last 17 years (with support from the UK Government’s Department of Energy Security and Net Zero). The technology can store renewable energy for up to several weeks, longer than battery technologies, and is ready to be deployed across key grid locations at scale today. Highview Power’s technology will also provide stability services to the national grid, which will allow for the long-term replacement of fossil fuel-based power plants for system support. 

Centrica will be supporting Carrington and the accelerated roll-out of the technology in the UK as a strategic partner, alongside UK Infrastructure Bank (UKIB) and other investors. The programme will set the bar for storage energy systems around the world, positioning the UK as the global leader in energy storage and flexibility. 

Chris O’Shea, Group Chief Executive, Centrica said: “The energy transition is an opportunity that could transform lives across the UK. But with a changing energy mix, and more intermittency from renewables, we have to explore new, innovative ways to store energy so our customers have electricity available when the wind doesn’t blow and the sun doesn’t shine. Low carbon storage is an essential part of the solution when looking at how we manage peaks in demand.

“That’s why I’m delighted that Centrica is investing in Highview Power. Not only are we bringing capital to the table to support rollout and expansion, but we’ll also be sharing our expertise on the energy transition and power storage. Through partnerships like this we can manage the challenges net zero might present while providing cleaner, greener power to customers.”

Richard Butland, CEO of Highview Power: “The UK’s investment in offshore wind and renewables has brought with it the need for structural solutions to capture the excess energy and support the grids transformation. Without storage there is no energy transition.

“UKIB and Centrica and our partners have today backed an ambitious plan to bring renewable energy storage into the UK economy at scale, liberating the potential of what is both the greenest and by far the cheapest energy source for the UK economy and provide energy security. Our first project in Carrington will be the foundation for our full scale roll out in the UK and expansion with partners to share this British technology internationally.”