Independent energy developers Carlton Power and Stag Energy are to merge their operations, targeting energy infrastructure projects that will support the transition to net zero.
This will include a strong focus on projects in the fields of energy storage, grid stability – providing system services like inertia, reactive power and short circuit capacity – and green hydrogen production.
As well as the infrastructure projects, the two companies have also established a carbon marketing and advisory business dubbed Carlton Carbon, which will facilitate the delivery of verified carbon certificates for both the compliance and voluntary sectors.
Together, Carlton and Stag will operate as part of the Carlton Power Group. Key personnel from both Carlton and Stag will be part of the new company, including Carlton’s founder Keith Clarke and Stag’s founder George Grant.
“Our combined capabilities provide an unparalleled track record of successfully identifying, developing and delivering major infrastructure projects in the UK and Europe,” said Clarke.
“Over the past 30 years, the team has delivered more than 6GW of both thermal and renewables generation. Importantly, looking ahead there are a range of business opportunities that we see to be vital for the UK energy system to safely navigate its way towards Net Zero. It’s an exciting future for all of us.”
Carlton Power is also involved in a joint venture with Highview Power Storage, developing what is claimed to be one of the world’s largest liquid air batteries. It is building the 50MW/250MWh CRYOBattery in Trafford, in the Greater Manchester area, and received a £10 million grant from the UK government in 2020 to aid its development.
The battery will form part of Trafford Energy Park, within which Carlton is also developing a 250MWe battery storage facility and a 200MW hydrogen electrolyser and commercial hydrogen hub for transport and heating use, dubbed Trafford Green Hydrogen.
Beyond the Trafford site, Stokesley, North Yorkshire-based Carlton is also looking to expand its Langage Energy Park, near Plymouth, with plans to incorporate energy storage and electrolyser facilities.
Meanwhile, Stag is progressing projects in support of National Grid’s Pathfinder process. The team has also originated and secured development consent orders for four OCGT projects in England and Wales. These were acquired in 2019, and won contracts in the T4 Capacity Auction in 2021.
Additionally, the Edinburgh-based company has developed an embedded portfolio of small-scale back-up generation units in recent years.
“The combined company intends to capitalise on the continuing growth in the market for distributed low carbon energy projects and to continue to deliver quality investment opportunities for both strategic and financial partners,” added Grant.
