UK Infrastructure Bank backs Highview Power with £165 million to deliver cutting edge long-duration energy storage facility

The investment is part of a £300 million fundraise to enable the construction of one of the world’s largest LAES facilities, which will be located in Carrington, Manchester. The funding round was led by UKIB and Centrica, alongside the UK Government, and a syndicate of investors including Rio Tinto, Goldman Sachs Power Trading, Kirkbi and Mosaic Capital.

The pioneering facility will use Highview Power’s proprietary LAES technology, with a storage capacity of 300 MWh and an output power of 50 MWs per hour for 6 hours.  

Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 380 jobs in total.

The investment demonstrates the Bank’s role in mobilising private finance to help first-of-a-kind technologies - which are critical for the transition to net zero - reach commercial scale, whilst driving regional, local and economic growth.

Highview Power has developed its LAES 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 when there is a surplus of supply and discharge energy to the grid during periods when renewable power generation is low.

Additionally, the creation of a stability island at the Carrington site further supports the reduction in carbon intensity of the grid, offering stability services such as reactive power and inertia using lower cost renewable energy.  

John Flint, UK Infrastructure Bank CEO said:  

“We are pleased to support this cutting-edge facility which will help stabilise the energy system as we increase our reliance on renewable energy sources like wind and solar. Our investment in Highview Power’s long duration energy storage system demonstrates yet again that we are perfectly placed to support nascent markets and mobilise private finance into emerging technologies.”

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 the excess and support the grid’s transformation. The wind blows two thirds of the time in this country, but the demand isn't necessarily there for it. Without storage, this wind goes to waste and 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.”

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 be also 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.” 

The Bank’s financing forms the cornerstone of a £56 million fundraise with UKIB’s investment accelerating the deployment of Invinity’s existing and next generation vanadium flow battery products onto the UK grid. Durable and easy to deploy at scale, Invinity’s batteries have lower levels of degradation compared to other storage technologies and do not suffer from thermal runaway making them well suited to a broad range of grid-scale battery applications.

In line with the Bank’s regional growth mandate, the investment will support the expansion of Invinity’s footprint in Scotland, boosting manufacturing in the nation and unlocking opportunities for skilled jobs. The proposed opening of a new manufacturing site in Scotland in addition to its existing facility in Bathgate will create up to 41 new jobs in the region.

Integrating longer-duration energy storage onto the grid is vital to supporting the UK’s net zero transition as the country adopts more variable energy sources like wind and solar and continues the rapid electrification of its transport and heat networks. Vanadium flow batteries are one the most promising proven technologies for longer-duration battery storage between 4-12hrs. Invinity’s batteries are ideally suited to manage energy supply and demand volatility with a number of advantages over more well-established lithium-ion batteries.

Invinity’s fundraise, including UKIB’s investment, is subject to the approval of the Company’s shareholders at a general meeting to be held later this month.

John Flint, CEO of UK Infrastructure Bank, said:  

“Electricity storage technologies have a crucial role to play in balancing the energy system in response to volatility in supply and demand as the UK transitions to net zero. However, the market of investors in more nascent longer-duration technologies like vanadium flow has developed more slowly than for lithium-ion batteries. Our cornerstone investment has helped Invinity to mobilise the additional private investment needed to scale their manufacturing, supporting the development of a promising new longer-duration technology.”

Larry Zulch, CEO at Invinity Energy Systems, said:

“We believe that long duration energy storage has an essential role to play in the global transition to a sustainable electricity system. This investment provides Invinity with the opportunity to scale up to help meet the significant global demand for batteries with the characteristics that make our vanadium flow battery unique: high performance, long asset life, compelling total ownership economics, and no propensity to catch fire. We are grateful for the support of the UK Infrastructure Bank as we demonstrate the viability of LDES in the UK with battery systems produced in the UK. We’re also grateful for the support of existing investors who enabled us to advance Mistral, our next-generation battery, to near completion, and for the support of new investors, such as Korea Investment Partners, who have embraced our vision of profitably meeting global demand for LDES.”

This deal marks the Bank’s third direct investment in the battery storage market following its £60 million loan to support Pacific Green in November and a £62.5 million commitment to Pulse Clean Energy in May 2023. This is in addition to £200 million commitment into the Equitix UK Electricity Storage Fund and Gresham House Secure Income Renewable Energy & Storage LP (SIRES).

Notes to editors

• Currently, National Grid forecasts show that up to 29 GW of total storage could be needed by 2030 and up to 51 GW by 2050. This is a huge increase on the 6 GW approx. currently available and means there is a clear need to accelerate deployment of capital and investment in new storage projects.
• The Bank’s investment follows the Government consultation on a specific support mechanism for longer duration storage technologies. The Bank welcomes this and will continue to explore how it can support investment into projects ahead of its introduction.
• For more information on the UK Infrastructure Bank, please contact Catherine Leonard and Archie Hart at: press@ukib.org.uk
• For more information on Invinity Energy Systems, please contact Joe Worthington at: jworthington@invinity.com