Masdar has bought UK-based Arlington Energy for an undisclosed price, with the aim of expanding its presence in the renewables and energy storage market.
The deal will play a part in Masdar’s further plans to pursue offshore wind in the UK and other markets.
Arlington has 170 MW of assets in operation. Masdar said the deal would allow it to develop, construction, manage and finance battery energy storage systems (BESS).
“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 Masdar CEO Mohamed Jameel Al Ramahi.
Working together will allow the companies to be more resilient and flexible, he said. They will be able to “accelerate the UK and other European countries’ clean energy transitions, and supporting our efforts in expanding our offshore wind and broader renewables portfolio”.
Arlington co-founder Matthew Clare said the partnership would speed up energy storage plans in the UK.
“With Arlington’s experience and expertise in the procurement, construction and operational management of BESS, and Masdar’s global capabilities in renewable energy, combining forces is a natural progression,” he said.
“This partnership creates a business with huge potential, immediately capable of delivering at scale domestically, and in other markets in the future, as more nations join the UAE and UK in setting net-zero targets.”
Clare said that the deal would help build Arlington’s 3 GWh pipeline.
Masdar said the UK may need 50 GW of storage by 2050. Europe may need 200 GW by 2030. The Abu Dhabi company aims to increase investments in offshore wind and other projects, it said.
Masdar has already invested in the London Array, the Dudgeon wind farm and Hywind Scotland. It has the aim of reaching 100 GW of renewable energy by 2030.
Arlington’s BESS sites are only able to provide power for around one hour, typically. However, the assets are able to react quickly to demand from the National Grid – in under a second. The projects operate in the merchant energy market, in addition to helping the National Grid.
Arlington has sold a number of projects to Rgreen Invest, staying on to manage the assets.