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Work starts on battery storage plant at former Lincolnshire gas power station
Centrica Business Solutions has revealed plans to convert a decommissioned Lincolnshire gas-fired power station into a battery storage facility capable of supplying the equivalent of a full day’s energy consumption for 11,000 households.
Working in partnership with GE, the company has started construction on a 50MW /100MWh battery storage project at Brigg, which will provide energy storage for the 43 onshore wind farms across Lincolnshire, maximising the potential of every megawatt of green electricity and providing vital resilience for the grid.
Storing renewable energy in this way makes it possible to better control the peaks and troughs associated with renewable energy generation – charging the batteries when electricity demand is low and discharging when demand peaks. The battery installed at Brigg represents the largest investment in storage capacity Centrica has made to date. It will have the capacity to store 100MWh of electric energy, equivalent to a full day’s energy consumption for around 15 per cent of the homes in North Lincolnshire.The battery storage system, supplied by GE, will provide grid support and energy services that will not only provide stability to the grid when there are power disruptions but also ensure renewable energy is utilised optimally, which should free capacity to allow more new renewable generation on the network.
Greg McKenna, Managing Director of Centrica Business Solutions, said: “Investing in low-carbon energy assets that boost the UK’s ability to store more renewable energy is key to getting to Net Zero. Lincolnshire has 242MW of onshore wind power capacity, but when supply outstrips demand some of those green electrons will go to waste if not stored. Working with GE we’ll store green energy produced locally and use it as efficiently as possible.
“As the UK’s power generation capacity becomes more distributed and the share of renewables increases, generation flexibility becomes critical to keep the lights on securely, sustainably, and affordably. Brigg battery storage investment will ensure we can maximise the use of the green energy generated by nearby wind farms – storing when the wind blows and discharging when it doesn’t.”
Prakash Chandra, renewable hybrids Chief Executive Officer at GE, said: “The UK has been one of the earliest and largest players in the battery energy storage space and the installed capacity keeps growing. However, there is a need for more if the country wants to achieve its Net Zero emission target for the power sector by 2035. We are glad to bring another project to life together with Centrica.”
Brigg battery storage is set to be fully operational in late 2023 with plans to run the site for 25 years. The solution implemented will be a 2-hour duration system with GE’s flexible duration architecture that will allow Centrica to modify the duration of the system in response to future grid needs and market opportunities.
Revenue and profit leap at Yü Group
Bobby Kalar, Chief Executive Officer, said: “We continue to reiterate our promise to keep delivering profitable growth and are confident this is set to continue.
“I’m very pleased to report another set of excellent results reflecting a strong and reliable performance. Remembering this is our fourth consecutive and consistent set of results I’m proud to confirm our key financial KPI’s are performing well and have exceeded our forecasts following two recent upgrades.
“Revenue is up by 96%, cash in hand has increased 37%, average monthly booking have increased by 49% and EBITDA has jumped over 400% compared to H1 2021. Our strategy is working well and our strengthened and highly disciplined business driven by our joined up processes, people and platforms continues to deliver a seamless customer experience.
“Our digital transformation program is on course and several digital projects are now live and embedded into the business. We will see additional benefits of reduced operating costs, better efficiencies and greater predictability as we scale these digital channels.
“While I’m pleased with the recent government Energy Bills Relief Scheme announcement, pledging support for business customers with their increased energy costs, I fear businesses will feel the ongoing pressure of volatile wholesale commodity prices for some time. We will continue to work hard to help our customers manage these difficult market conditions.
“A £300m Mark to Market trading position gives me comfort our hedge book is very strong, in accordance with our hedging policy, and provides significant confidence in forward gross margin.
“The successful launch of Yü Smart is a game changer in terms of value chain ownership. As well as supplying energy to our business customers we have gained certification from the Retail Energy Code (REC) and approval from Elexon and Xoserve to operate as a Meter Equipment Manager (MEM) and Meter Installer (MI) for both gas and electricity customers, creating the opportunity to install and maintain SMETS2 meters. In addition, owning the asset, creating an annuity income, provides an exciting new value pool for the Group to benefit from. I look forward to updating the market as we rapidly scale this capability.
“We performed well in the pandemic; even better in 2021, despite challenges in the market; and we expect even better performance in the remainder of 2022 and beyond. I’m reassured our business continues to prosper and will use its strength and experience as an anchor for any further turbulence. As we continue to enjoy the fruits of our hard work, I look forward to delivering significant shareholder value in the near future.
“Finally, I would like to thank my wonderful team who continue to support the Board’s target to achieve £500m revenue at over 4% EBITDA as soon as possible.“