Proving the Business Case for the Internet of Things

Aggreko acquires Younicos for £40m

Steve Rogerson
July 18, 2017



Scottish power generation equipment supplier Aggreko has acquired Younicos, a German developer of integrated energy systems based on battery storage, for £40m.
 
Younicos delivers modular and scalable smart energy products integrating battery storage. Its knowledge of batteries combined with proprietary control systems enables the seamless integration and management of all forms of power, including thermal, renewable and battery energy resources; this is becoming critical in an increasingly distributed energy market.
 
“We are delighted to be joining with a market leading power provider in Aggreko,” said Stephen Prince, Younicos chief executive. “Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future. Integration and management of multiple distributed energy sources will be necessary to optimise energy systems and deliver customers with greater stability at a lower economic and environmental cost.”
 
Prince will stay with the combined company and report directly to Chris Weston, Aggreko chief executive.
 
Global energy markets are changing, decarbonising and becoming more decentralised and digital. As renewables penetration increases, intermittency becomes a more difficult issue to manage across grid systems. Integration and control of thermal, renewable and battery systems will be increasingly required to ensure power stability and reliability are maintained. Off grid and microgrid energy are ever more integrating renewable generation, while industrial and commercial users are also taking advantage of opportunities for renewable integration and demand-side management.
 
Aggreko hopes to deploy the Younicos integration and control systems, combined with batteries, across its existing business to lower the cost of energy, ensure reliability and reduce carbon emissions.
 
Younicos has invested heavily in R&D since it was founded in 2005. It is based in Germany and the USA and has over 200MW of installed storage systems, with a strong pipeline across both developed and emerging markets. In 2016, Younicos had revenues of £7m and made an operating loss of £15m; gross assets in December 2016 were £20m.
 
“As energy markets continue to decarbonise, decentralise and become more digital, the integration and control of multiple energy sources, including thermal and renewable, will be essential to ensure the provision of reliable power,” said Weston. “As a pioneer of smart energy based on battery storage, Younicos is at the forefront of this trend. Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy.”
 
Aggreko expects the acquisition to be loss making in the short term and therefore earnings dilutive. The investment will be made in cash.