SENS solutions enable the transition to a fossil free energy system

Merger between SENS and Pumped Hydro Storage forms leading innovation company in energy storage

NGM-listed Sustainable Energy Solutions Sweden (SENS), a leading player in thermal energy storage, is merging with the energy storage company Pumped Hydro Storage (PHS) to form the first pure storage company on the Swedish stock exchanges. The merger is being implemented to develop a joint deal for large-scale energy storage, with the vision of becoming the leading player in the world in the development of long-term energy storage.

An important position in the value chain

Movement in the value chain

With the merger, SENS together with PHS takes an important position in the value chain for pumped hydro power, a technology that is expected to grow to 240 gigawatts before 2030 and thus be a key technology to drastically increase the global capacity of energy storage and thereby enable a continued transition to green, but varying, energy sources, such as solar and wind power International Hydropower Association).

SENS has previously primarily focused on the execution of projects, while the new focus establishes the company as a project manager and project owner. The new position will mean a business model with a strongly growing margin, at the same time as the focus enables more projects to be started and thus a valuable project portfolio to be built. SENS will be the first pure storage company for electricity and heat on the Swedish stock exchanges.

“People need electricity even when the sun is not shining or the wind is not blowing, at the same time as we have to consume electricity when there is too much. At the beginning of April, Sweden experienced negative electricity prices throughout the country for the first time. We see that the heating and electricity markets are converging and together with an increasing share of production being uncontrollable and weather-dependent, energy storage will be a key piece of the puzzle for solving current and future challenges in the electricity market. We are now ready to solve those problems,” says SENS CEO Calle Wallenius.

Clear synergies

The common vision to lead the development of energy storage with climate-neutral and sustainable solutions is the basis for the merger. The new constellation will be able to deliver a broader offer in storage and distribution of energy, where PHS 'innovative and large-scale solution for storing energy underground will be a strong complement to SENS heat storage. Complementary and overlapping competencies within, among other things, geotechnical engineering design, data- and flow calculations, as well as wider contact areas with key players, create opportunities that the companies have not had individually.

Significantly increased interest in storage

The result of the merger is a complete offer in energy storage and distribution, as well as a stronger brand towards the capital market, where the listed environment offers new opportunities to attract the large, green investments required for larger projects. For PHS, this is a natural step that accelerates the realization of the project portfolio of large-scale projects, including the company's pioneering pilot project on Åland.

Interest in large-scale energy storage has increased in society in recent years, as negative electricity prices in both Sweden and the rest of the world have made it clear that weather-dependent electricity production cannot stand on its own two feet but needs to be supplemented with these types of solutions. This has also forced new markets to improve the possibilities for technology, and provide compensation for the services that energy storage can contribute.

“We see how increasingly fluctuating electricity prices and new markets create completely new conditions for energy storage in the future. This is an exponentially growing market, and by entering the market in an early stage, we have great opportunities to grow quickly together. What we have seen today is just the beginning,” says Otto Werneskog, CEO of Pumped Hydro Storage.

Business structure

The merger is proposed to be carried out by SENS acquiring PHS with newly issued shares so that each company's previous owner owns approximately 50 percent each of the new company. In connection with the transaction, the main owner of SENS, MLT, has also undertaken to convert the receivables it has on the company into equity. The ownership structure in the merged company together creates a broad and strong ownership picture with complementary networks and competencies within green energy solutions.

About Pumped Hydro Storage

PHS develops and delivers large-scale infrastructure projects to external investors. The company has a unique technology for storing energy underground, including in disused mines, where the water flow between two reservoirs is used to store energy when the electricity price is high while consuming electricity when the electricity price is low or negative. The company's technology can thus stabilize the electricity grid at the same time as it optimizes its earning capacity depending on the electricity price. The company currently has an ongoing pilot project on Åland.

About SENS

SENS delivers new and innovative energy solutions that give property owners and energy companies a better economy and environmental profile. The company's patented solutions offer energy storage that is simple and quick to implement, has greater storage capacity and gives back for a longer period of time. The company has been listed on the Nordic Growth Market (NGM) since 2018.