Varco Energy Selects NHOA Energy and IQA-Elecnor for 100MW Old Allen Road BESS

LEEDS, England--(BUSINESS WIRE)--Varco Energy (Varco), a pioneering UK-based battery storage asset owner and operator backed by the Adaptogen Capital Battery Storage Fund, is pleased to announce it has signed supply contracts for its 100MW / 244MWh Old Allen Road Battery Energy Storage System (BESS) in West Yorkshire.

Highlights:

• The Old Allen Road BESS adds 100MW to Varco’s portfolio of operational and in-construction projects, taking its operational BESS capacity to 350MW by the end of 2027, with a further 275MW in development.
• NHOA Energy, in consortium with IQA-Elecnor, will deliver the turnkey EPC project at Old Allen Road, with NHOA Energy supplying the BESS and IQA-Elecnor responsible for the associated balance of plant and interconnection works (33/275kV).
• GE Vernova has been contracted to provide the project 275kV High Voltage Transformer.
• The Old Allen Road BESS is a flagship project, designed to provide essential flexibility and grid-balancing services to the UK electricity system.

Supply Contract Consortium
Old Allen Road BESS has been procured via a consortium model enabling Varco Energy to deliver the project under an EPC umbrella, using global leaders in BESS project delivery.

NHOA Energy, a global provider of utility-scale energy storage systems, will be delivering the EPC project in consortium with IQA-Elecnor, one of the world’s leading corporations in the development, construction, and operation of projects and services in the energy infrastructure sector. Building on a strong track record of collaboration, the two companies will combine complementary expertise in energy storage, EPC delivery and transmission infrastructure to deliver the project.

The system will feature advanced grid-forming capabilities designed to support renewable energy integration while enhancing the flexibility, resilience and long-term sustainability of the UK electricity grid, including the complete works for the connection to the transmission network at 275kV. The project leverages NHOA Energy’s experience supporting grid stability initiatives in the UK, including participation in Stability Pathfinder projects and collaboration on the deployment and testing of grid-forming technologies. The development also marks the first BESS Project to be executed by IQA-Elecnor in the region, a milestone achievable due to the accumulated experience through the successful completion of two Synchronous Condenser in Scotland and the award of four new Grid Stability Projects in Northern Ireland and in the Republic of Ireland.

GE Vernova, a global leader in electrification and decarbonisation, has been contracted to provide the projects 275kV High Voltage Transformer.

The Old Allen Road BESS is designed to provide essential flexibility and grid-balancing services to the UK electricity system. With a power of 100MW and a capacity of 244MWh, due to start operating in 2027, the site will deliver frequency and voltage regulation, reserve capacity, and load shifting services that are critical for integrating renewable energy and ensuring a stable, reliable supply of electricity as the UK accelerates towards a net zero power system.

Varco’s Portfolio
The Old Allen Road BESS is a flagship project for Varco, with a capacity of 100MW, due to start operating in 2027. Varco is on track to have 350MW of BESS assets in operation by 2027, with a further 275MW in development, for delivery shortly thereafter. This rapid deployment is directly aligned with the UK government’s target of 23–30GW of energy storage by 2030 and an estimated £11 billion investment required in storage assets by 2035.

Battery energy storage is now recognised as a cornerstone of the UK’s clean energy future. As the grid becomes increasingly reliant on intermittent renewable generation, BESS assets like Old Allen Road are essential for smoothing supply and demand, reducing curtailment of renewables, and providing the flexibility needed to maintain grid stability. Adaptogen’s disciplined and targeted capital deployment is enabling the sector to thrive, supporting the UK and Europe’s ambition to decarbonize its power system and deliver secure, affordable, and sustainable energy for all consumers.

Richard Whitmore, Director, Old Allen Road BESS / Varco Energy, commented:
“The delivery of the Old Allen Road BESS project is the next step for Varco as it brings onstream 350MW of BESS assets by 2027. Old Allen Road has brought together global leaders NHOA Energy, Elecnor, and GE Vernova to deliver the project under a consortium EPC agreement. At Varco, we are leveraging world-class expertise to deliver a flagship energy storage system that will play a vital role in supporting the UK’s transition to a net zero power system. The innovative collaboration within this consortium underscores our commitment to deploying cutting-edge solutions that enhance grid flexibility, integrate renewable energy, and ensure a stable, sustainable, and affordable electricity supply for the future.”

Fabrizio Ciaccia, Vice President EMEA, NHOA Energy, said:
“After the successful commissioning of the 477MWh Blyth BESS in Australia, NHOA Energy and Elecnor are joining forces once again to bring proven expertise in energy storage, EPC delivery and transmission infrastructure to support Varco Energy in delivering one of the most ambitious battery storage projects in the UK. Old Allen Road is a strategic asset that will strengthen grid resilience and support the UK’s energy transition.”