Kistos Plc has acquired EDF Energy (Gas Storage) for £25 million

LONDON: Kistos Plc (LSE: KIST) has announced the successful acquisition of EDF Energy (Gas Storage) Limited, a subsidiary of EDF Energy (Thermal Generation) Limited. The deal, valued at £25 million, was finalized following the initial announcement on February 20, 2024, and marks Kistos’s foray into the gas storage sector.

The acquisition includes two key onshore gas storage facilities in the UK: Hill Top Farm and Hole House Farm. This move not only diversifies Kistos’s business but also enhances its upstream portfolio, signaling a strategic pivot in the company’s growth trajectory.

Hill Top Farm, known for its substantial working gas capacity of 17.8 million therms, is on track to boost this figure to 21.2 million therms shortly. The facility currently contributes 3.1% to the UK’s total onshore gas storage capacity and is capable of providing up to 11% of the nation’s flexible daily gas capacity, thanks to its fast-cycle nature.

On the other hand, Hole House Farm presents a significant opportunity for Kistos to increase its share in the UK’s gas storage market. Although operations at Hole House have been dormant since 2018, plans are underway to reactivate the facility, which is expected to substantially enhance the company’s storage capabilities.

The acquisition comes at a time when the UK’s reliance on intermittent renewable energy sources is growing, underscoring the increasing importance of fast-cycle storage assets to maintain system balance. Gas storage assets are thus poised to become a foundational element of the energy transition.

Furthermore, both Hill Top and Hole House hold potential for future repurposing to accommodate emerging energy storage solutions, such as compressed air or hydrogen storage. Kistos is actively conducting concept studies to explore these possibilities.

With the government’s approval under the National Security and Investment Act (NSIA), Kistos has now assumed full operatorship of both sites, ready to steer the facilities towards a future aligned with the UK’s evolving energy landscape.

Commenting on the acquisition, Andrew Austin, Kistos’ Executive Chairman, said: “We look forward to working with the existing team with a view to maximising the value-accretive opportunities these gas storage facilities present, establishing Kistos’ presence across the energy value chain with a foothold in the midstream market. Over the longer term, we will also be evaluating our options to further expand operations via other energy storage sources such as compressed air or hydrogen.”

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