French multinational utility ENGIE has solidified its position in the energy storage market by entering an agreement to purchase the battery storage business of Houston-based Broad Reach Power.
Collaborating with co-investment partners Yorktown Partners, Mercuria Energy, and Apollo Infrastructure Funds, ENGIE aims to bolster its energy storage capabilities through this strategic move.
This transaction is anticipated to surpass the $1 billion mark in total equity value. The deal encompasses 350 MW of grid-scale battery assets already operational, along with an additional 880 MW currently under construction. The majority of these assets are strategically located within ERCOT, a prominent electricity market operator in the United States.
Notably, the acquisition comprises a robust pipeline of battery storage projects at advanced stages of development, totaling a substantial 1.7 GW. Furthermore, a sizeable pipeline of early-stage projects is also part of this comprehensive deal. It's important to highlight that this transaction does not involve Broad Reach Power's 1.8 GW solar and wind power project portfolio, accompanied by 4 GWh of battery storage, situated in the Mountain West region of the U.S.
Broad Reach Power, established in 2019 with the support of EnCap Energy Transition, had earlier sold a 50% stake in the company to Apollo Funds in December 2021, underlining its strategic partnerships and growth trajectory.
Source: Renewable Energy World