Energy firm Engie has agreed to buy US battery storage company Broad Reach Power from EnCap Investments and Apollo funds.
EnCap said the French multinational utility company has agreed to acquire Houston-based Broad Reach from EnCap Energy Transition Fund I, its co-investment partners Yorktown Partners, Mercuria Energy and Apollo infrastructure funds for a total equity value in excess of $1bn (€908m).
The agreement involves the acquisition of 350MW of operating assets, as well as 880MW under construction assets with a commissioning expected before the end of 2024, 1.7GW of advanced-stage projects and a significant pipeline of early-stage projects. The projects are located in Texas, California and the central states of the US.
EnCap said the sale of Broad Reach to Engie does not include the company’s portfolio of 1.8GW of solar and wind power projects together with 4GWh of battery storage in the Mountain West region of the US.
The acquisition is in line with Engie’s plan of having 10GW of battery capacity globally by 2030, Engie said, adding that it also strengthens the firm’s position in the energy transition in the US.
Catherine MacGregor, Engie’s CEO, said: “This acquisition is fully in line with Engie’s strategy: it will contribute to the development of a low-carbon, affordable and resilient energy system where flexible assets will play a critical role alongside renewables.”
Broad Reach was founded in 2019. In November 2021, Apollo acquired a 50% stake in Broad Reach Power from EnCap. At the time, Apollo said it expects to invest up to $400m (€363m) of additional equity to fund Broad Reach’s continued expansion and growth pipeline.
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