New Nordic owner to deliver planned £550M Loch Ness pumped storage hydro project
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A major Scottish pumped storage hydro project at Loch Ness is positioned for further development under new Norwegian ownership.
Norwegian hydropower electricity producer Statkraft – which describes itself as Europe’s largest renewable power generator – has announced it will acquire the Red John Pumped Storage Hydro Scheme from Scottish clean energy development company Intelligent Land Investments Group (ILI). Financial details of the transaction were not disclosed.
ILI took the 450MW Red John Pumped Storage Hydro project from initial conception to being development ready after was first conceived in 2015. The scheme was granted consent by Scottish Government ministers in June 2021, and which point it was costed at £550M. Aecom was tasked with providing environmental impact assessment and surveying, consenting and engineering support from the scheme’s feasibility stage to through to ministerial greenlighting.
Located on the banks of Loch Ness around 14km south-west of Inverness, the scheme’s aim, pending a final investment decision from the government, is to capture excess renewable energy and store it for later use, supporting security of supply as Great Britain’s electricity network shifts away from fossil fuels. It will be one of the first new pumped storage hydro facilities built in Scotland since the middle of the last century.
Statkraft UK managing director Kevin O’Donovan said: “Statkraft is fully committed to supporting the UK in strengthening its energy security and helping to secure the economic benefits of the net zero transition.
“The acquisition of this significant pumped hydro storage scheme will play a key role in that. But there needs to be an appropriate support mechanism in place, so we’re now looking to the UK Government to provide the certainty that will allow us to proceed with confidence.”
ILI CEO Mark Wilson said: “From its inception until now, Red John has been eight years in getting to this stage and has required the expertise and dedication of a fantastic team. I would especially like to thank the ILI team, Aecom, TLT, PwC, and everyone who has helped in reaching this exciting milestone. Entrusting Red John to Statkraft reflects our confidence in their capability to realise its potential and rekindle Scotland’s hydro legacy.
“As we stand on the threshold of a greener future where long-duration storage like Red John is paramount, we believe the UK can lead in renewable energy paired with energy storage as a keystone for the energy transition. There is over 5GW of pumped storage hydro projects in the UK pipeline which will inject billions into the economy and create over 15,000 new jobs. We encourage the UK Government to provide the support mechanisms now for long duration storage and strive to become a world leader in achieving net-zero.”
Aecom renewables practice lead Ian Gillies said: “We’re delighted to see the Red John Pumped Storage Hydro Scheme reach the next phase of development, building on our delivery of the scheme’s preliminary engineering design and environmental impact assessment, as well as assisting ILI with the planning inquiry.
“Red John is the second UK pumped storage scheme in recent years where we have led the engineering design and environmental assessment processes through to successful planning approval. We congratulate our client ILI on its achievement and wish Statkraft every success. We look forward to Red John being one of the first new pumped storage hydro facilities built in Scotland since the 1960s, heralding an exciting new phase in using this proven engineering solution to help achieve the energy transition needed to meet our shared net zero goals.”
Statkraft, which develops renewable energy technologies such as wind, solar, grid stability, hydropower, battery storage, and green hydrogen, has a presence in Scotland, including several wind farms under operation, a headquarters in Glasgow and Keith Greener Grid Park in Moray. Its other projects in planning or under construction represent at least £2bn of potential future capital investment in Scotland.
It also has pumped storage plants in operation in Norway and Germany, alongside over 350 other hydropower plants, including Rheidol, near Aberystwyth, in Wales.
Elsewhere in Scotland, Drax is working to expand its Crauchan pumped hydro storage facility in Argyll after gaining planning permission. It has appointed Cowi to oversee the £500M project.
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