Aggreko Announce Â£40 Million Agreement To Acquire Younicos
Aggreko has announced its Â£40 million agreement to acquire Younicos, a global market leader in the development and deployment of integrated energy systems, based on battery storage. This acquisition strengthens our position as global energy markets continue to evolve and is in line with our strategy to invest in technology in order to reduce the cost of energy for our customers.
Younicos delivers smart energy solutions integrating battery storage, which are modular and scalable. Its knowledge of batteries combined with proprietary control systems, enables the seamless integration and management of all forms of power, including thermal, renewable and battery energy resources; this is becoming critical in an increasingly distributed energy market.
Global energy markets are changing: decarbonising and becoming more decentralised and digital. As renewables penetration increases, intermittency becomes a more difficult issue to manage across grid systems. Integration and control of thermal, renewable and battery systems will be increasingly required to ensure power stability and reliability are maintained. Off grid and microgrid energy solutions are ever more integrating renewable generation, whilst industrial and commercial customers are also taking advantage of opportunities for renewable integration and demand-side management.
The capabilities brought by Younicos, leveraged through our global footprint and experience in distributed power generation, are compelling. The Younicos integration and control systems, combined with batteries, can be deployed across our existing business to lower the cost of energy, ensure reliability and reduce carbon emissions for our customers around the world.
Younicos has invested heavily in R&D since it was founded in 2005. It is based in Germany and the USA and has over 200 MW of installed storage systems, with a strong pipeline across both developed and emerging markets. The CEO, Stephen Prince, will report directly to Chris Weston, Aggreko Chief Executive. For the calendar year 2016, Younicos had revenues of Â£7 million and made an operating loss of Â£15 million; gross assets at 31 December 2016 were Â£20 million. We expect it to be loss making in the short term and therefore earnings dilutive. The investment will be made in cash.
Chris Weston, Aggreko Chief Executive, said: "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. 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."
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."