Acquisition of control over an 80 megawatt battery energy storage system by KXP Immingham Limited through the granting of an Ofgem electricity generation licence: notice of final order
Published 28 August 2024
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1. Following a detailed national security assessment, the Chancellor of the Duchy of Lancaster has made a Final Order pursuant to section 26 of the National Security and Investment Act 2021 (“the Act”), which comes into force on 28 August 2024.
2. The Parties who are subject to the order are:
i. KXP Immingham Limited;
ii. KX Power Limited;
iii. GRP III UK Holdings Ltd; and
iv. Any Power Offtaker appointed in relation to the Immingham battery storage facility.
3. Upon the granting of an Ofgem electricity generation licence to KXP Immingham Limited in respect of the Immingham battery storage facility, KXP Immingham Limited will gain control of the qualifying asset by being able to direct or control how the asset is used, or direct or control how it is used to a greater extent. This acquisition is a trigger event under section 9(1)(b) of the Act.
4. The Chancellor of the Duchy of Lancaster has approved the acquisition of control over an 80 megawatt battery energy storage system by KXP Immingham Limited through the granting of an Ofgem electricity generation licence subject to conditions that:
i. KXP Immingham Limited must notify and receive approval from the Chancellor of the Duchy of Lancaster in advance of making changes to the power offtaker and provider of ancillary services; and
ii. the sharing of information by the third-party power offtaker and provider of ancillary services of the site is restricted to a list of permitted information.
5. The Chancellor of the Duchy of Lancaster considers that these measures mitigate any risks to national security in relation to:
i. the security of a future United Kingdom electricity asset; and
ii. preventing disruption of services provided to the Electricity System Operator.
6. The Chancellor of the Duchy of Lancaster considers that the Final Order is necessary and proportionate to mitigate the risks to national security.