BlackRock’s alternatives arm has acquired a US energy storage company from EnCap Energy Transition Fund I (EETF I) and co-investment partners Yorktown Partners and Mercuria Energy.

EnCap Investments said BlackRock Alternatives, via its Diversified Infrastructure business, has agreed to buy the Austin, Texas-based Jupiter Power for an undisclosed amount.

Founded in 2017, Jupiter Power developed and operates utility-scale battery energy storage systems. The company owns and operates a large storage fleet in Texas comprising 655MWh, and currently has 340MWh of new projects in or near construction, including its first project in California.

The disposal is the second exit transaction by EnCap’s $1.2bn EETF I

Kellie Metcalf, EnCap’s energy transition managing partner, who is also chairwoman of Jupiter Power’s board of directors, said: “Jupiter is a pioneer in the utility-scale battery energy storage industry in the US We are proud to have been their capital provider and partner as they grew the platform and facilitated the integration of renewables onto the US power grid.”

Andy Bowman, Jupiter Power’s CEO, said: “Acquisition of Jupiter’s uniquely capable energy storage platform by BlackRock’s Diversified Infrastructure business is another sign that energy storage is maturing into an important new player in the electricity business with a critical role to play.

“Our team has special insight into the many useful things storage can do because of our deep prior experience with renewable energy projects, and we are proud to help lead the way now to the next generation of utility-scale energy storage systems.”

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