Power rental business Aggreko has announced a £40 million deal to buy Younicos, a firm specialising in battery storage control solutions.
The move will give Aggreko a strong foothold in the emerging market for energy storage solutions and give the Scotland-based firm access to Younicos’ expertise in software and integration.
Germany-based Younicos has over 200 MW of installed storage systems, with a strong pipeline across both developed and emerging markets. Aggreko said that the deal will be earnings dilutive in the short term.
However, the acquisition is in line with Aggreko’s strategy to invest in technology to reduce the cost of energy, the firm said. “Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy,” said Chris Weston, Aggreko Chief Executive.
Weston added: “As energy markets continue to decarbonise, decentralise and become more digital, the integration and control of multiple energy sources, including thermal and renewable, will be essential to ensure the provision of reliable power.
“As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.”
Stephen Prince, Younicos Chief Executive, said: “We are delighted to be joining with a market leading power provider in Aggreko. Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future.
“Integration and management of multiple distributed energy sources will be necessary to optimise energy systems and deliver customers with greater stability at a lower economic and environmental cost.”