February 5, 2022 [gasworld] – Low carbon energy storage company GES and independent storage and logistics company GPS have merged to create a major force in the energy storage sector and develop a global network of terminals.
The combined business will take on the name, Global Energy Storage Group (GES), and will help facilitate the growing use of low carbon energies, with an emphasis on cryogenic storage for products such as liquefied petroleum gas (LPG), liquefied natural gas (LNG) and ammonia, which is a promising hydrogen carrier.
In addition, biofuels and logistics solutions for the transhipment of carbon dioxide (CO2) are being pursued.
The new GES group will feature the following four storage assets, with additional business and project developments being pursued globally:
- Port of Rotterdam – Europe’s main port where GES is pursuing the development of storage and logistics infrastructure designed to facilitate energy transition
- Port of Amsterdam – Substantial hydrocarbon and biofuels storage capacity, supported by a rail link giving access to continental Europe
- Port Hamriyah – A recently completed storage facility for fuels and petrochemicals located in the Hamriyah Free Zone in Sharjah, UAE.
- Port Klang in Malaysia – Southeast Asia’s largest independent LPG storage terminal, commissioned in May this year, with refrigerated storage and VLGC capability.
The corporate management team will consist of Eric Arnold as Chairman of GES, Peter Vucins as Group CEO, Alan Hyslop as CFO and Mark Synnott as Chief Technical Officer. Combined, the group will have over 140 staff.
Peter Vucins, Group CEO of Global Energy Storage, said it will continue to develop a network of storage terminals with particular emphasis on facilitating the energy transition.
He said, “With a focus on cryogenic storage solutions – where our team has a proven track record and very strong expertise – we see substantial growth opportunities for LPG in Asian markets but also elsewhere. We believe that LPG can be an important transition fuel as we develop new infrastructure to accommodate future fuels such as ammonia. Domestic energy security, as well as the energy transition, is of paramount importance. Our four assets and advanced project pipeline tackle both challenges.”
Eric Arnold, Chairman of GES, said: “By combining the two companies we not only keep the team together but create a platform which positions us extremely well for further growth together with our trusted partners.” Major shareholders, Bluewater and White Deer Energy, both back the merger.
Most projections suggest that in order for the world’s climate goals to be attained, the power sector needs to decarbonise fully by 2040.
However, the rising share of renewables in the power mix brings challenges such as structural strains on existing power-generation, transmission, and distribution infrastructure created by new flows of electricity and by the inherent variability of renewables, including potential imbalances in supply and demand, changes in transmission flow patterns, and the potential for greater system instability.
Grid-scale battery storage in particular needs to grow significantly. In the Net Zero Scenario, installed grid-scale battery storage capacity expands 44-fold between 2021 and 2030 to 680GW, according to the IEA.
In January 2022 the governor of New York committed to doubling the state’s energy storage target, aiming for the deployment of at least 6 GW of storage by 2030. Furthermore, the Inflation Reduction Act, passed in August, includes an investment tax credit for stand-alone storage, which is expected to boost the competitiveness of new grid-scale storage projects.
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