As major energy corporations scale back renewable investments, Harmony Energy Income Trust plc (HEIT) continues to expand its battery storage portfolio. While some global energy giants reconsider green strategies, HEIT has reported a 4.36% increase in its unaudited Net Asset Value (NAV) for the quarter ending 31 January 2025. The NAV now stands at £209.83 million, or 92.38 pence per Ordinary Share, up from 88.52 pence per share on 31 October 2024.
HEIT’s portfolio generated £9.7 million in revenue, equating to £97.8k per MW annually—a 57% increase from the previous quarter. The surge is driven by high wholesale market prices and increased activity in the balancing mechanism, underscoring BESS’s role in grid stability.
HEIT’s fully operational portfolio comprises eight 2-hour duration BESS projects, totaling 790.8 MWh/395.4 MW, including the Pillswood facility in Yorkshire and the Bumpers installation in Buckinghamshire.
HEIT’s success highlights the growing importance of battery storage in the UK’s renewable energy transition. With increasing price volatility, long-duration BESS assets will play an even greater role in balancing supply and demand.
Volklec, a Coventry-based battery start-up, aims to build a £1bn gigafactory with backing from former Britishvolt investors and a partnership with Chinese battery supplier Far East Battery. Supported by investment firm Frontive Group, Volklec is learning from Britishvolt’s missteps by securing customers and in-house expertise before committing to large-scale manufacturing.
The company will initially produce cylindrical nickel-rich battery cells for e-bikes and energy storage at the UK Battery Industrialisation Centre, a government-funded pilot facility. By 2025, it plans to expand into automotive, aerospace, and marine power cells, targeting smaller manufacturers that lack the resources for their own battery production.
Focus on Grid-Scale Storage
Volklec aims to enhance the UK’s energy security by producing lithium-ion 21700 battery cells for grid-scale storage. These batteries will help stabilize the National Grid by balancing supply and demand fluctuations, reducing reliance on gas-powered plants, and enabling greater use of renewable energy.
Rapid Deployment Through Established Technology
With a long-term agreement in place, Far East Battery provides Volklec with technical expertise and supply chain support. Production will begin at UKBIC, starting with a 100MWh line, scaling to 1GWh by 2026, and culminating in a 10GWh gigafactory by the decade’s end.
Supporting the UK’s Energy Transition
Volklec’s efforts align with the UK’s push for sustainable power solutions and net-zero emissions. By offering locally produced batteries, the company seeks to fill supply chain gaps and bolster the country’s battery industry, which has been dominated by foreign entities. If successful, Volklec could play a pivotal role in the UK’s shift to renewable energy storage.
BMW has suspended its planned £600 million investment to produce electric Mini cars at its Cowley plant in Oxford, citing multiple uncertainties in the automotive industry. This decision raises concerns about the future of the historic plant and reflects broader challenges in the UK’s transition to electric vehicles (EVs).
The UK government has set ambitious targets for EV adoption, aiming to phase out new petrol and diesel car sales by 2030. However, automakers have expressed concerns about these stringent mandates, especially given the slower-than-expected growth in EV demand. In response, the government launched a consultation in December 2024 to seek industry views on adjusting the Zero Emission Vehicle (ZEV) mandate, which requires a specific percentage of new car sales to be zero-emission vehicles each year. The consultation aims to provide clarity and support to manufacturers during this transition.
Despite a 21.4% increase in battery electric vehicle sales in 2024, the UK market share for EVs reached only 19.6%, falling short of the government’s 22% target. Manufacturers have invested heavily in consumer incentives, offering over £4.5 billion in discounts throughout 2024 to boost adoption. However, these efforts have been deemed unsustainable in the long term, prompting calls for additional government support and infrastructure development to encourage consumers to switch to electric vehicles.
The broader automotive industry is evolving rapidly, with different propulsion technologies competing for dominance. Battery Electric Vehicles (BEVs) remain at the forefront, but Plug-In Hybrid Electric Vehicles (PHEVs) and Hydrogen Fuel Cell Vehicles (FCVs) are also gaining traction. PHEVs, such as the Mitsubishi Outlander PHEV and Chevrolet Volt, offer a bridge between petrol and electric propulsion, providing flexibility for consumers wary of range limitations. BEVs, meanwhile, are benefiting from advancements in battery technology, with companies like NanoXplore developing graphene-based solutions to enhance performance.
Hydrogen fuel cell technology is also advancing, with BMW investing in its first hydrogen-powered vehicle, the iX5 Hydrogen, set for launch in 2028. Other automakers, such as Toyota and Hyundai, are also exploring hydrogen-powered solutions to complement battery-electric models. However, infrastructure challenges remain, particularly in hydrogen refueling networks and green hydrogen production. Companies like ITM Power are working on electrolysis systems to produce hydrogen more sustainably, but widespread adoption will require significant investment.
BMW’s decision also reflects concerns over potential tariffs on imported vehicles. The company had planned to produce new electric Mini models in collaboration with China’s Great Wall Motor. However, higher tariffs imposed by the European Union on Chinese EV imports have impacted these plans, adding to the uncertainties surrounding the investment.
This development underscores the complex interplay of policy, market demand, and international trade in the UK’s journey toward sustainable transportation. It highlights the need for coordinated efforts between the government and industry stakeholders to address these challenges and facilitate a smoother transition to electric vehicles.
Invinity Energy Systems, a British manufacturer of vanadium flow batteries, has partnered with UK-based energy infrastructure developer Frontier Power to deploy up to 2 GWh of Invinity’s ENDURIUM vanadium flow batteries. This collaboration aims to enhance the UK’s energy security and reduce costs by targeting bids for Ofgem’s Long Duration Energy Storage (LDES) Cap and Floor scheme, expected to open between Q2 and Q3 2025.
Under the agreement, Frontier Power has secured the right of first refusal on 2 GWh of Invinity’s manufacturing capacity. Frontier will lead project development, including financing, land acquisition, and planning permissions, while Invinity will supply the flow batteries. The partnership also explores opportunities beyond the UK, targeting markets in Japan, Korea, Vietnam, Malaysia, the USA, and the EU.
Invinity, headquartered in the UK, has recently expanded its manufacturing capabilities with a new facility in Motherwell, Scotland, increasing its UK assembly capacity to over 500 MWh per year. This expansion underscores Invinity’s commitment to bolstering domestic battery manufacturing and supporting the UK’s transition to a low-carbon energy system.
The UK’s cap and floor regime is designed to encourage investment in long-duration energy storage, aiming to reduce the estimated £3 billion spent annually on wind energy curtailment. By integrating large-scale LDES solutions like Invinity’s ENDURIUM batteries, the UK can enhance grid stability, optimize renewable energy utilization, and lower energy costs for consumers.
This partnership marks a significant milestone in advancing sustainable energy infrastructure, positioning the UK as a leader in non-lithium energy storage solutions.
In a significant stride towards sustainable electric mobility, Mercedes-Benz has inaugurated Europe’s first integrated battery recycling facility in Kuppenheim, Germany….
Recent satellite data reveals that the combined sea-ice extent in the Arctic and Antarctic has reached a record low of 15.76 million square kilometres as of February 13, 2025. This decline is attributed to a combination of warmer air and ocean temperatures, along with wind patterns disrupting the ice formations.
In the Arctic, January 2025 saw an average sea ice extent of 13.13 million square kilometres, marking the second-lowest extent for that month since satellite records began. This reduction is part of a broader trend, with the Arctic’s average temperature rising at nearly four times the global average, leading to significant ice loss. The diminishing ice cover reduces the Earth’s albedo effect, causing darker ocean surfaces to absorb more solar energy and further accelerate warming.
The Antarctic, once considered resilient against ice loss, has also seen unprecedented reductions. January 2025 recorded an average sea ice extent of 5.2 million square kilometres, approximately 5% below the 1991–2020 average for the month. Since the mid-2010s, the region has experienced several years of minimal sea-ice coverage. The current low is influenced by elevated air and sea temperatures, leading to increased surface melting of ice shelves. This melting not only contributes to sea-level rise but also disrupts habitats for native species such as emperor penguins. The loss of Antarctic sea ice not only contributes to sea-level rise but also disrupts global ocean circulation patterns, potentially leading to more extreme weather events worldwide.
The diminishing sea-ice at both poles has profound implications for global climate systems. The reflective properties of ice play a crucial role in regulating Earth’s temperature. As ice cover decreases, more heat is absorbed by the oceans, further intensifying global warming. Additionally, changes in sea-ice affect ocean circulation patterns, which can lead to more extreme weather events worldwide.
This alarming trend comes as global temperatures continue to break records, with January 2025 reaching an average surface air temperature 1.75°C above pre-industrial levels, according to the Copernicus Climate Change Service. The urgent need to curb emissions is underscored by China’s continued expansion of coal-fired power plants, adding 94.5 gigawatts (GW) in 2024 alone—its largest increase since 2015. This expansion threatens to lock in high emissions for decades, directly conflicting with global efforts to peak emissions before 2025 and cut greenhouse gases by 43% by 2030. The continued reliance on coal not only exacerbates ice loss but also increases the risk of triggering irreversible climate tipping points, such as ice sheet collapse and biodiversity loss.
Addressing this issue requires a concerted effort to reduce greenhouse gas emissions and transition to sustainable energy solutions. Companies like Ørsted A/S and Vestas Wind Systems A/S are leading the way in renewable energy development, focusing on offshore wind farms and wind turbine manufacturing, respectively. Investments in such technologies are essential to mitigate the impacts of climate change and preserve the planet’s delicate ice-dependent ecosystems.
In a significant stride towards sustainable electric mobility, Mercedes-Benz has inaugurated Europe’s first integrated battery recycling facility in Kuppenheim, Germany. This 6,800-square-metre plant is designed to process 2,500 tonnes of battery materials annually, aiming to recover up to 96% of critical metals such as lithium, nickel, and cobalt. These reclaimed materials are slated for use in producing over 50,000 new battery modules each year, effectively closing the materials loop and reducing dependence on raw material imports.
The facility employs a combination of mechanical and hydrometallurgical processes. Initially, batteries undergo mechanical shredding to separate components like plastics, copper, aluminium, and iron. Subsequently, a hydrometallurgical process extracts valuable metals from the ‘black mass’—the active material in battery electrodes. This method operates at temperatures up to 80°C, consuming less energy compared to traditional pyrometallurgical techniques, and aligns with the plant’s net carbon-neutral operations powered entirely by green electricity.
Mercedes-Benz’s initiative reflects a broader industry trend towards enhancing the sustainability of electric vehicles (EVs). By reclaiming and reusing battery materials, the company not only reduces environmental impact but also strengthens supply chain resilience amid growing global demand for EVs.
This development underscores the automotive industry’s commitment to environmental stewardship and resource efficiency, setting a precedent for future advancements in sustainable transportation.
In a significant stride towards sustainable electric mobility, Mercedes-Benz has inaugurated Europe’s first integrated battery recycling facility in Kuppenheim, Germany….
In January 2025, global temperatures soared to unprecedented levels, with the Copernicus Climate Change Service reporting an average surface air temperature 1.75°C above pre-industrial levels. This alarming milestone underscores the urgency of limiting warming to the 1.5°C threshold established by the Paris Agreement to avert catastrophic climate impacts.
Contradicting global efforts to mitigate climate change, China has significantly increased its coal-fired power capacity. In 2024, the nation initiated construction of coal power plants totaling 94.5 gigawatts (GW), the highest addition since 2015. This surge raises concerns about China’s commitment to peak carbon emissions before 2030, as the expansion of coal infrastructure may lock in high emissions for decades.
The juxtaposition of China’s coal expansion with the recent record-breaking global temperatures highlights a critical disconnect between current policies and the urgent need for climate action. Surpassing the 1.5°C threshold increases the risk of triggering irreversible climate tipping points, such as the collapse of major ice sheets and loss of biodiversity, leading to severe consequences for ecosystems and human societies worldwide.
To align with the 1.5°C target, global greenhouse gas emissions must peak before 2025 and decline by 43% by 2030. China’s continued reliance on coal power not only jeopardizes its own climate commitments but also poses a significant challenge to global efforts aimed at preventing the most catastrophic impacts of climate change.
The European Commission is exploring the introduction of a temporary gas price cap to address the widening gap between European and US energy costs. European gas prices have surged to their highest levels in over two years, exacerbated by cold weather and weak wind power generation, leaving businesses struggling with energy expenses that are three to four times higher than those in the US.
The proposed cap is being discussed as part of the EU’s forthcoming “clean industrial deal,” aimed at supporting European heavy industries amid geopolitical and economic challenges. This includes countering the impact of US trade policies and ensuring stability in the EU’s energy markets.
However, industry groups have voiced strong opposition, warning that such measures could undermine trust in the European gas market. Eleven organizations, including Europex and the financial markets lobby group AFME, have urged European Commission President Ursula von der Leyen to reconsider, arguing that a cap could disrupt the benchmark Title Transfer Facility (TTF) and push global traders toward alternative pricing mechanisms outside the EU.
Beyond short-term price controls, experts argue that the EU’s long-term energy stability lies in accelerating the transition to renewable energy. Expanding wind and solar power capacity, which reached record highs in 2023, along with improving grid-scale battery storage, can reduce dependence on volatile fossil fuel markets and bring down gas prices. Investment in green hydrogen, backed by companies such as ITM Power, and advanced energy storage technologies from firms like Invinity Energy Systems, could further bolster energy security and affordability.
Industry analysts highlight that green hydrogen and scalable battery storage solutions will be key to stabilizing energy costs. As the EU continues its transition, companies investing in these technologies will play a significant role in reducing fossil fuel reliance. Despite these advancements, some EU member states remain divided on market interventions, with Germany and the Netherlands voicing skepticism over a price cap’s long-term effectiveness.
As discussions continue, the balance between energy affordability and market stability remains a contentious issue, but one thing is clear: increasing renewable energy deployment, particularly in solar, wind, and energy storage, will be crucial in stabilizing European gas prices in the long run.
The UK government’s £21.7 billion investment in carbon capture and storage (CCS) technology is facing mounting criticism, with growing concerns that it represents a poor use of funds that would be better spent on carbon-free power generation and modernizing the national grid. While initial CCS funding was allocated to projects in Teesside and Merseyside, projects in the Humber and Scotland remain in limbo, and a forthcoming spending review may further curtail investment in this controversial technology.
Critics argue that CCS is an expensive and inefficient solution to decarbonization. The House of Commons Public Accounts Committee has warned that the technology remains unproven at scale, with its costs likely to be passed onto consumers in the form of higher electricity bills. Rather than investing in capturing emissions from fossil fuel plants and heavy industry, environmental groups and energy experts are advocating for a shift towards renewable energy sources such as wind, solar, and green hydrogen.
Energy Minister Sarah Jones has already admitted that the government’s CCS target of capturing 20 to 30 million tonnes of CO₂ annually by 2030 is “no longer achievable,” pointing to previous underfunding. However, many question whether CCS should be pursued at all, given that large-scale deployment has yet to be commercially viable and may never provide an affordable path to net-zero emissions.
Instead of backing CCS, industry leaders are calling for investment in grid infrastructure to support the rapid expansion of renewables. The UK’s current energy grid was designed around centralized fossil fuel generation and requires substantial upgrades to accommodate distributed, intermittent sources like offshore wind and solar farms. Modernizing transmission networks and improving energy storage solutions, such as battery and hydrogen storage, would enable the country to phase out fossil fuels altogether rather than relying on costly carbon capture mechanisms.
Grid-Scale Storage: A Better Investment Alternative
A more effective use of public funds would be to invest in grid-scale energy storage solutions, which are essential to balancing supply and demand as the UK transitions to renewable energy. Large-scale battery storage, such as lithium-ion and emerging vanadium flow batteries, can store excess wind and solar power for use when generation dips. Hydrogen storage is also gaining traction as a long-term energy carrier that can help stabilize the grid.
One key player in this space is Invinity Energy Systems, a UK-based leader in vanadium flow battery technology. Unlike traditional lithium-ion batteries, Invinity’s vanadium flow batteries offer longer lifespans, greater efficiency, and enhanced safety for grid-scale applications. As the UK seeks to expand its energy storage capacity, Invinity presents a compelling investment opportunity in the push toward a more resilient and renewable-powered grid. Other companies, such as Gresham House Energy Storage Fund, are also working to deploy scalable energy storage solutions, creating further investment potential in this rapidly growing sector.
Beyond private sector involvement, government-backed investment in storage infrastructure could significantly enhance grid reliability, reducing reliance on gas peaking plants and ensuring that renewable energy is available when needed. This shift in focus would make the UK’s energy system cleaner, more resilient, and better suited to achieving net-zero goals.
Globally, CCS remains a niche technology, with only 45 operational sites capturing around 50 million tonnes of CO₂ annually—far short of the reductions needed to meaningfully combat climate change. The UK should instead focus on scaling up its renewable energy capacity and improving energy efficiency to deliver a sustainable, cost-effective path to net zero.
As the government reviews its energy strategy, the debate continues over whether CCS is a lifeline for the fossil fuel industry or a genuine climate solution. With limited public funds available, many argue that prioritizing carbon-free energy generation, grid modernization, and energy storage is the smarter path forward.
Reports indicate that this January ranks as the third-largest monthly temperature anomaly above pre-industrial levels. Notably, Europe experienced its second-hottest January ever, despite below-average temperatures in regions such as Iceland, the UK, Ireland, northern France, and parts of Scandinavia.
The persistence of record-breaking warmth, even amidst La Niña conditions—which typically contribute to global cooling—has heightened concerns about the accelerating pace of climate change. Experts warn that this trend underscores the urgent need for comprehensive strategies to reduce greenhouse gas emissions and mitigate the impacts of global warming.
The only viable path to halting further warming lies in large-scale investment in renewable energy. According to the International Renewable Energy Agency (IRENA), electricity from renewables must underpin our future energy system, as renewable power can immediately and significantly reduce global CO₂ emissions. Companies such as Ørsted and Vestas Wind Systems are expanding offshore wind projects, while ITM Power and Ceres Power are advancing hydrogen and fuel cell technologies to provide cleaner alternatives. Investment funds like Gresham House Energy Storage Fund and Harmony Energy Income Trust are directing capital into large-scale battery storage solutions, essential for stabilizing renewable energy integration into the grid. Without these critical investments in sustainable energy infrastructure, global temperatures will continue to rise, leading to more extreme climate consequences.
The unexpected intensity of January’s heat serves as a stark reminder of the challenges posed by climate change, emphasizing the critical importance of advancing sustainable energy solutions and environmental stewardship.
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