Global energy storage owner-operator BW ESS has announced a strategic merger with UK-based Penso Power in a move designed to strengthen its position in the energy storage sector both in the UK and internationally.
BW ESS and Penso Power have partnered on a number of recent battery storage agreements, including a Sungrow BESS supply agreement for the 350 MW/1750 MWh Hams Hall energy storage project in North Warwickshire and the UK’s first long-term energy storage agreement for a single battery energy storage system (BESS) with Shell Energy Europe.
BW ESS was already the largest stakeholder in Penso Power. Through this merger, BW ESS will acquire the remaining shares of the British company. The founders of Penso Power will become shareholders of BW ESS, while also being appointed to the senior management team.
BW ESS has over 1 GWh of projects under construction in Britain, Sweden and Australia and is working with strategic partners in these areas to develop a ‘multi-gigawatt development pipeline’. That pipeline, combined with Penso Power’s 2GW+ Australian and UK grid, means the entity now has around 5GW across its territory.
BW ESS is part of BW Group, a global maritime company founded in 1955 that includes shipping, floating infrastructure, deepwater oil and gas production and new sustainable technologies. The merger aims to increase the company’s energy storage capabilities and strengthen its presence in the renewable energy market.
Exponential growth
With Penso Power’s established UK footprint, the merger aims to capitalize on the exponential growth of the UK energy storage market. In July 2024, operational capacity was 4.6 GW/5.9 GWh and is expected to increase to 7.4 GW/11.6 GWh by the end of 2024. The partnership is also likely to open new opportunities for BW ESS across Europe.
“I am happy to welcome the entire Penso Power team as full colleagues,” said Erik Strømsø, CEO of BW ESS. “With their expertise and experience on board, we are a meaningful step closer to achieving our mission: unlocking the value of energy storage, which is critical to enabling and accelerating the energy transition.”
Richard Thwaites, CEO of Penso Power, added: “Penso Power is proud to have been a pioneer in grid-scale energy storage since 2017. Our partnership with BW ESS since 2021 has allowed us to build the Penso Power team and enter new markets. Italy and Australia. This transaction completes the evolution of the Penso Power business to become part of a global energy storage platform.”
In parallel with a ‘short period of integration’, BW ESS states that the development of all portfolio projects will continue as planned.
