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Retail Supplier Parent Acquires Energy Storage Developer In Transaction Representing In Excess Of $1 Billion Equity Value
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ENGIE announced that it has signed a binding agreement for the acquisition of 100% of Broad Reach Power, a company specialized in battery storage and based in Houston, from the EnCap Energy Transition Fund I, its co-investment partners Yorktown Partners and Mercuria Energy, and infrastructure funds managed by Apollo Infrastructure Funds.
The total equity value of the ENGIE transaction exceeds $1 billion, EnCap Energy Transition said
The transaction involves 350 MW of operating battery storage assets, as well as 880 MW under construction assets with a commissioning expected before the end of 2024, mainly in the Electric Reliability Council of Texas (ERCOT) territory
The transaction also includes 1.7 GW of advanced stage projects and a "significant pipeline" of early stage projects, ENGIE said
In addition to Texas, the projects are located in California and the central states of the United States.
"Broad Reach Power skills, tools and teams are the perfect fit, in and outside the United States, with ENGIE’s integrated model," ENGIE said
"The acquisition will support the Group's goal of having 10 GW of battery capacity globally by 2030. It will also strengthen ENGIE's position as a leader in the energy transition in the United States, where the group already has significant positions through its renewable assets (5GW in operation at the end of 2022), battery storage and its energy management platform. The development of these projects will respond to the strong need for flexibility generated by the growth of the share of renewable energies in the energy mix and will increase ENGIE capacity to provide 24/7 decarbonized electricity to his customers," ENGIE said
Completion of the transaction is expected by Q4 2023, subject to the fulfilment of certain approvals from anti-trust and energy regulatory authorities.
The transaction does not include Broad Reach Power's portfolio of 1.8GW of solar and wind power projects together with 4GWh of battery storage in the Mountain West region of the U.S.
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August 24, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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