BP Joins Forces With Harmony Energy for Battery Storage Projects
BP plc BP, a global energy leader, signed an agreement with battery storage investment company Harmony Energy Income Trust (“HEIT”) to provide physical power trading and optimization services for two cutting-edge battery energy storage systems (BESS). These projects, slated to launch in the first half of 2024, are set to revolutionize the stability and flexibility of the GB power grid.
BP's collaboration with HEIT targets two significant projects — Hawthorn Pit (49.9MW/99.8MWh) and Wormald Green (33MW/66MWh). The combined output of these projects, totaling 80MW/160MWh, is equivalent to powering approximately 200,000 homes for two hours.
During periods of low demand, surplus power will be efficiently stored and seamlessly released to stabilize the grid during peak usage. This innovation addresses a critical need in the energy sector, especially as reliance on renewable sources like wind and solar continues to grow.
Hormoz Ala, senior manager in European power at BP, emphasized the transformative impact of the partnership on the transition to a Net Zero future. The ability to make real-time decisions through BP's power trading expertise and Open Energi's platform represents a dynamic approach to grid support optimization. Paul Mason, managing director of HEIT’s Investment Adviser, highlighted the alignment of values between the two companies.
The BP-HEIT partnership marks the first BESS asset that BP has engaged in optimizing, since the acquisition of Open Energi, a digital energy platform, in 2021. The innovative software developed by Open Energi will facilitate real-time insight and decision-making, seamlessly connecting HEIT’s assets with power markets through BP’s trading business.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #5 (Strong Sell).
Some better-ranked players in the energy sector are Range Resources Corporation RRC and Helix Energy Solutions Group, Inc. HLX, both currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc CLB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources is among the top 10 natural gas producers in the United States with a diversified asset portfolio spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. RRC has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Helix Energy Solutionsis an international offshore energy company that provides specialty services to the offshore energy industry, with a focus on its growing well intervention and robotic operations. HLX has witnessed an upward earnings estimate revision for 2023 and 2024 over the past 60 days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields. It has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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