SEMBCORP Industries' wholly owned subsidiary in the United Kingdom, Sembcorp Energy UK (SEUK), intends to construct Europe's largest energy storage system - a 360 MW battery - at its Wilton International industrial site.

The energy storage system is expected to lend resilience to the UK's electricity network and boost the growth of renewables, said Sembcorp Industries U96 : U96 0% in a press statement on Tuesday (Dec 14), adding that the move is in support of UK's net zero targets.

SEUK's Wilton International site in Teeside has available land and connections that will allow "swift instalment" of the batteries that will be built in tranches.

This investment will add 70 cleaner, healthier and safer jobs to the thousands already delivered across Teesside, Darlington and Hartlepool as critical technologies are being developed to "make the UK net zero by 2050", said Ben Houchen, Tees Valley mayor in a press statement.

SEUK currently operates 70 MW of batteries, with a further 50 MW already in the pipeline and due to be operational in early 2022.

With a large portfolio, the units are able to supply power and other services to the national grid swiftly, which is crucial to maintaining a secure and stable energy system that will aid the UK's low-carbon transition, said Sembcorp Industries.

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The battery portfolio expansion together with SEUK's 300 MW net zero emissions plant - Whitetail Clean Energy - announced in July 2021, will "align SEUK's growth with technologies" that support a greener future, noted Sembcorp Industries.

With the completion of these developments, SEUK's total energy portfolio will total over 1.6 GW, with almost half a GW being supplied by batteries.

Said Andy Koss, chief executive of Sembcorp Industries, UK & Middle East: "Now, more than ever, flexible energy sources play an increasingly important role in maintaining secure and reliable energy supplies. With a growing reliance on renewables, the UK energy system needs to be flexible and able to respond quickly to changes."

"Sembcorp Energy UK is committed to accelerating the energy transition with sustainable solutions, such as batteries," he added.

This announcement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2021, it said.

Shares of Sembcorp Industries ended Tuesday flat at S$1.96.