UK's Carlton Power, Stag Energy to merge, focus on storage, grid stability

Carlton Power and Stag Energy are to merge their operations and focus on energy storage, grid stability services, hydrogen production and carbon markets, the two UK independent energy developers said in a statement Jan. 6.

The combined company is to operate as part of the Carlton Power Group. Both have track records in developing combined cycle gas turbine, open cycle gas turbine and gas reciprocating engine generation projects.

"In addition to energy infrastructure projects, we have also established a carbon marketing and advisory business – Carlton Carbon - to facilitate the delivery of verified carbon certificates in the compliance and voluntary sectors," said Carlton founder Keith Clarke.

In grid stability services the company would look to provide system inertia, reactive power and short circuit capacity.

It was also developing a portfolio of green hydrogen production projects across the UK.

Carlton, headquartered in Stokesley, North Yorkshire, is leading the development of the Trafford Energy Park in Manchester.

This includes plans for a 50 MW/250 MWh liquid air energy storage facility with Highview Power, a 200 MW hydrogen electrolyzer and commercial hydrogen hub for transport and heating use (Trafford Green Hydrogen) and a 250 MWe battery storage facility.

The Trafford site also includes a proposed 2 GW combined cycle gas plant, consented by the government in 2010.

The project had the potential "to operate on hydrogen or natural gas with carbon capture as the market evolves," Carlton Power said.

Carlton was also looking to expand its Langage Energy Park, near Plymouth, to incorporate energy storage and electrolyser facilities. It had already developed CCGT and solar assets at the site.

Meanwhile Stag Energy, based in Edinburgh, was developing projects in support of National Grid's Pathfinder process to find new ways to stabilize the power network.

The company had previously secured development consent orders for four 299-MW open cycle gas turbine projects in England and Wales, bought by Drax Group in 2019.

Stag has also developed a number of small-scale back-up gas engine units in recent years, as well as the Gateway gas storage facility in the Irish Sea, consented by the government in 2008 but yet to proceed.

Stag founder George Grant said the combined company would target "the continuing growth in the market for distributed low carbon energy projects."

S&P Global Platts assessed the price of UK hydrogen (PEM electrolysis, including capex) at GBP21.78/kg Jan. 5, up from GBP4.45/kg Apr. 1 when the assessment was launched.