French utility company Engie has reached a deal, with an equity value of over $1bn, to purchase Texas-based battery energy storage firm Broad Reach Power.
The sellers were private equity firms EnCap and Apollo. This deal awaits clearances from anti-trust and energy regulatory agencies and is scheduled to close by the fourth quarter of this year.
Established in 2019, Broad Reach Power develops and operates clean energy and energy storage projects across Texas, California, and other markets in the US.
Apollo Funds bought a 50% interest in the company in December 2021.
As part of the transaction, Engie will now own 350MW of grid-scale battery assets in operation, along with 880MW under construction in the Electric Reliability Council of Texas (ERCOT) territory.
These projects are expected to be commissioned by the end of next year.
The deal also includes 1.7GW of storage projects in the pipeline, which are in the advanced stages of development, along with a pipeline of projects in the early phases of development.
It excludes the 1.8GW solar and wind projects portfolio, as well as 4GWh of battery storage in the Mountain West region of the US.
Engie CEO Catherine MacGregor 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.”
According to the French utility company, the purchase will help it to meet its 2030 target of reaching 10GW in global battery capacity.
It is also said to strengthen the company’s position as an energy transition ‘leader’ in the US, where it had 5GW in operation by the end of last year.
