NatPower launches £1bn push to build UK’s biggest battery storage hub

Global energy company Natpower has announced plans for a massive investment in battery storage, one that will eclipse a key Labour initiative. The company confirmed that it will inject one billion pounds into the development of one of the largest storage sites in the United Kingdom.

The project will be built on Sembcorp Utilities’ Wilton International Site near Middlesbrough. According to Natpower UK, the site will not rely on government contracts but instead will be supported entirely by private funding. Once completed, it will deliver one of the highest-capacity battery energy storage facilities in the country, with both energy duration and storage capacity expected to reach double the levels seen at existing sites.

Battery storage systems play a crucial role in making renewable energy more reliable. They store electricity for moments when the sun is not shining and the wind is not blowing, filling the gaps and ensuring that clean power can flow more consistently into the grid.

Natpower has stated that this project will also help reduce the substantial costs incurred by national grid bottlenecks, which currently waste around £ 3.5 billion each year.

The development is expected to generate approximately 200 construction jobs. Natpower has also pledged to work with local colleges and environmental organisations to deliver training opportunities as part of the build.

Chief executive Stefano Sommadossi described the project as a blueprint for the future, combining renewable energy storage with nearby ports and other industries.

“Within five years, we can transform one of the UK’s most important industrial hubs into a net-zero economic powerhouse and then replicate this model in ports across the globe,” Sommadossi said.

Just a day earlier, the National Wealth Fund announced that it would back two investment firms in a joint venture worth £ 500 million to expand battery storage capacity nationwide.

Chancellor Rachel Reeves welcomed the moves, stating that battery storage would help drive down household bills while creating jobs. Energy minister Michael Shanks echoed this, stressing that storage facilities are essential for strengthening clean power, which has been identified as one of the UK’s high-growth sectors.

On Wednesday morning, Ofgem announced that the energy price cap would increase by 2 per cent between October and December, slightly higher than anticipated. This increase means the average household will face annual energy costs of around £ 1,755, despite falling wholesale prices.

Looking ahead, the government has also unveiled plans to reduce industrial energy prices by as much as a quarter for seven thousand businesses starting in 2027. Currently, many British companies still pay more for energy than their counterparts in countries such as France and the United States.