Varco Energy Awards Major Contracts for 100MW Old Allen Road Battery Storage Project in West Yorkshire
Varco Energy, a leading UK-based battery energy storage asset owner and operator backed by the Adaptogen Capital Battery Storage Fund, has announced the signing of key supply and engineering contracts for its flagship Old Allen Road Battery Energy Storage System (BESS) project in West Yorkshire. The project, which will deliver 100MW of power and 244MWh of energy storage capacity, represents a significant milestone in Varco’s long-term strategy to expand its operational battery storage portfolio and support the United Kingdom’s transition to a cleaner and more resilient energy system.
The Old Allen Road facility is expected to become one of the company’s most important energy storage assets and will contribute substantially to the flexibility and reliability of the UK electricity grid. Once operational in 2027, the project will help balance electricity supply and demand, facilitate greater renewable energy integration, and provide essential grid support services.
Strengthening Varco’s Growing Battery Portfolio
The addition of the Old Allen Road project further accelerates Varco Energy’s ambitious growth plans. The company expects to have a total of 350MW of battery energy storage capacity in operation by the end of 2027. Beyond this operational portfolio, Varco is also advancing an additional 275MW of projects currently under development, creating a strong pipeline for future deployment.
As energy storage becomes increasingly critical to supporting renewable energy expansion, Varco’s growing portfolio positions the company as an important participant in the UK’s evolving power market. The Old Allen Road development highlights the company’s commitment to delivering large-scale infrastructure capable of supporting the nation’s net-zero ambitions while improving energy security and affordability.
Consortium Approach Brings Together Industry Leaders
To ensure successful delivery of the project, Varco Energy has adopted a consortium-based Engineering, Procurement, and Construction (EPC) model that brings together internationally recognized specialists in energy storage and power infrastructure.
Under the agreement, NHOA Energy will serve as the primary provider of the battery energy storage system while partnering with IQA-Elecnor to execute the turnkey EPC project. The collaboration combines NHOA Energy’s extensive expertise in utility-scale battery storage solutions with IQA-Elecnor’s strong capabilities in energy infrastructure development, construction, and transmission network integration.
NHOA Energy has established itself as a major player in the global energy storage sector, delivering large-scale battery projects designed to enhance grid reliability and renewable energy integration. IQA-Elecnor, meanwhile, has built a reputation as one of the world’s leading engineering and infrastructure companies, with extensive experience in developing and operating major energy projects across multiple markets.
The partnership reflects a strategic effort to leverage complementary strengths and proven project delivery experience. Together, the companies will manage all major aspects of the development, ensuring the facility is constructed efficiently and meets the high-performance standards required by modern electricity networks.
Advanced Technology for Grid Stability
A key feature of the Old Allen Road BESS will be its advanced grid-forming capabilities. These technologies are increasingly recognized as essential tools for maintaining system stability in electricity grids that are becoming more dependent on renewable energy sources such as wind and solar power.
Unlike traditional power generation assets that inherently provide grid support services, renewable energy resources often require additional technologies to maintain voltage and frequency stability. The battery storage system at Old Allen Road will help address this challenge by delivering services that enhance the resilience and reliability of the electricity network.
The project includes complete transmission connection works at 275kV, enabling the facility to interact effectively with the broader UK transmission system. These capabilities will allow the battery installation to provide rapid response services that help maintain grid balance during fluctuations in generation and demand.
NHOA Energy brings considerable experience to this aspect of the project, having previously participated in UK grid stability initiatives and Stability Pathfinder programs. The company has also played a role in deploying and testing grid-forming technologies designed to support increasingly renewable-based power systems.
For IQA-Elecnor, the project marks an important milestone as its first battery energy storage development in the region. The company’s selection reflects its extensive expertise gained through successful delivery of major grid stability infrastructure projects, including synchronous condenser installations in Scotland and additional grid support projects across Northern Ireland and the Republic of Ireland.
GE Vernova to Supply High-Voltage Transformer
In addition to the EPC consortium, Varco Energy has awarded GE Vernova a contract to supply the project’s 275kV high-voltage transformer.
The transformer will play a critical role in connecting the battery storage system to the transmission network, ensuring efficient and reliable transfer of electricity between the facility and the wider grid. GE Vernova’s involvement adds another globally recognized technology provider to the project team and reinforces the emphasis on utilizing proven, high-quality equipment throughout the development.
As power systems continue to modernize and electrification expands, advanced transmission infrastructure remains a crucial component of ensuring reliable energy delivery. The transformer supplied by GE Vernova will support the project’s long-term operational performance and contribute to overall grid reliability.
Supporting the UK’s Energy Transition
The Old Allen Road BESS is specifically designed to provide a range of essential services that will support the ongoing transformation of the UK electricity system.
With a capacity of 100MW and 244MWh, the facility will deliver frequency regulation, voltage support, reserve capacity, and load-shifting capabilities. These services help stabilize electricity networks and ensure power remains available during periods of fluctuating renewable generation or changing consumer demand.
Battery energy storage systems have emerged as a cornerstone technology in the transition toward low-carbon electricity systems. By storing excess renewable energy during periods of high generation and releasing it when demand rises, battery facilities help maximize renewable energy utilization while reducing reliance on fossil fuel-based generation.
The UK government has identified energy storage as a critical component of its future power system strategy, targeting between 23GW and 30GW of energy storage capacity by 2030. Achieving these goals is expected to require substantial investment, with estimates suggesting that approximately £11 billion will be needed for storage infrastructure by 2035.
Projects such as Old Allen Road will play a significant role in helping the country achieve these objectives while supporting broader efforts to decarbonize the electricity sector.
Leadership Perspectives
Richard Whitmore, Director of the Old Allen Road BESS project at Varco Energy, described the development as a major step forward in the company’s expansion plans.
He noted that the project demonstrates Varco’s commitment to bringing together leading global technology and infrastructure partners to deliver a world-class energy storage facility. According to Whitmore, the collaboration among NHOA Energy, Elecnor, and GE Vernova highlights the company’s focus on deploying innovative solutions that improve grid flexibility, accelerate renewable energy integration, and contribute to a more sustainable and affordable electricity system.
Fabrizio Ciaccia, Vice President for Europe, the Middle East, and Africa at NHOA Energy, emphasized the value of the partnership and the strategic importance of the project. He pointed to the companies’ previous successful collaboration on major battery storage developments and noted that the Old Allen Road facility would strengthen grid resilience while supporting the UK’s clean energy ambitions.
As construction preparations move forward, the Old Allen Road Battery Energy Storage System stands as an important example of how strategic investment, technological innovation, and international collaboration are helping shape the future of energy infrastructure in the United Kingdom. Once operational, the facility is expected to become a key contributor to grid stability, renewable energy integration, and the nation’s long-term decarbonization goals.
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