US-listed private equity firm KKR is to acquire joint control of UK battery storage developer Zenobē in partnership with existing investor Infracapital, according to reports.The deal will see KKR buy a roughly 45% stake in Zenobē making it the largest shareholder in the company alongside Infracapital, and valuing the grid-scale storage and EV specialist at around £800 million (US$1 billion).
The deal involves a primary and secondary share sale worth around £500 million according to an investment source cited in UK outlets.
Alongside developing grid-scale battery energy storage system (BESS) projects in the UK, Zenobē also provides fleet electrification solutions and second life repurposing of EV batteries into BESS.
Recent notable grid-scale BESS the company is working on include a 300MW/600MWh unit in Blackhillock, Scotland, on which construction started earlier this year with commercial operation schedule for mid-2024. That is part of a portfolio of four sites in Scotland totalling 1050MW/2100MWh of energy storage.
Zenobē also made headlines earlier this year when what it claimed was the largest BESS directly connected to a transmission network in Europe came online and started producing reactive power services in a ‘world-first’.
Direct connection to the high-voltage transmission network, rather than the lower voltage distribution network, ensures a more reliable connection and greater visibility to the grid operator.
Smaller shareholders in the firm include Japanese utility TEPCO and one of its joint venture entities Jera.
The reported acquisition by KKR is the second deal of its kind in quick succession in the UK market. In July, asset manager Searchlight Capigtal agreed to buy Gresham House, the largest operator of BESS in the UK, for nearly £500 million.
KKR declined to comment when asked by Energy-Storage.news, while Zenobē has not replied to a request at the time of writing.
