French multinational utility company Engie has acquired Houston-based battery storage company Broad Reach Power for over $1 billion.
The deal was completed in August 2023 and is part of Engie’s plan to expand its global renewable energy portfolio.
The acquisition is expected to help Engie achieve its goal of becoming the world’s leading player in the energy transition.
Broad Reach Power was previously owned by private equity firms Apollo and EnCap Energy Transition.
Source: Broad Reach Power
The company specializes in battery storage solutions for renewable energy projects.
Engie’s acquisition of Broad Reach Power is expected to strengthen its position in the US renewable energy market, particularly in the area of battery storage.
The acquisition of Broad Reach Power is part of Engie’s strategy to achieve net-zero carbon emissions by 2045.
The company plans to invest heavily in renewable energy projects and is targeting a 50% increase in renewable energy capacity by 2030.
The acquisition of Broad Reach Power is expected to help Engie achieve this goal by providing the company with a significant presence in the US renewable energy market.
Key Takeaways
- Engie has acquired Houston-based battery storage company Broad Reach Power for over $1 billion, as part of its strategy to expand its global renewable energy portfolio.
- The acquisition is expected to strengthen Engie’s position in the US renewable energy market, particularly in the area of battery storage, and help the company achieve its goal of becoming the world’s leading player in the energy transition.
- Engie plans to invest heavily in renewable energy projects and is targeting a 50% increase in renewable energy capacity by 2030.
Engie and Broad Reach Power Overview
About Engie
Engie is a French multinational electric utility company that operates in the fields of electricity, natural gas, and energy services.
With a presence in over 70 countries, Engie is committed to the energy transition and aims to become a leader in the zero-carbon transition.
The company’s focus is on providing low-carbon energy solutions that are reliable, affordable, and sustainable.
Engie has set a target of achieving 10GW of global battery capacity by 2030. To achieve this target, the company is investing in battery storage projects around the world.
The acquisition of Broad Reach Power is a significant step towards achieving this goal.
About Broad Reach Power
Broad Reach Power is a battery energy storage and power company based in Houston, Texas.
The company was founded in 2019 and has quickly become a leader in the battery storage industry. Broad Reach Power owns an energy storage portfolio of 350MW in operation and 880MW in construction.
The company focuses on developing, owning, and operating utility-scale battery storage projects.Broad Reach Power’s portfolio includes projects in Texas and California, two of the largest battery storage markets in the US.
The company’s projects provide grid services such as frequency regulation, capacity, and energy. Broad Reach Power’s projects are designed to help integrate renewable energy into the grid and improve grid reliability.
The acquisition of Broad Reach Power by Engie will support the company in achieving its target of 10GW of global battery capacity by 2030.
The acquisition will also enable Engie to expand its presence in the US battery storage market and strengthen its position as a leader in the zero-carbon transition.
Details of the Acquisition
Financial Aspects
Engie, the French multinational utility company, has acquired Broad Reach Power LLC, a battery storage business based in Houston, Texas, from private equity firms EnCap and Apollo for over $1 billion.
The sale includes 350 MW of grid-scale battery assets in operation and 880 MW under construction.
This acquisition is part of Engie’s strategy to expand in electricity storage and renewables.
Engie has agreed to buy 100% of Broad Reach Power and will fund the transaction with available cash. The deal is expected to close by the fourth quarter of 2023.
Regulatory Approvals
The acquisition awaits clearances from anti-trust and energy regulatory agencies before it can be completed.
Engie and Broad Reach Power have already filed for regulatory approval with the relevant authorities.
The acquisition is expected to strengthen Engie’s position in the US energy market and help it achieve its goal of becoming a leading player in the energy transition.Related Posts:
