Equinor has signed an agreement to buy a 100% stake in the US based battery storage developer East Point Energy LLC. The acquisition supports Equinor’s ambition to be a leading company in the energy transition and provides a platform for broadening our energy offerings in the US.
The privately owned East Point Energy is headquartered in Charlottesville, Virginia and has a 4.1 GW current pipeline of early to mid-stage battery storage projects focused on the US East Coast. Additional growth potential beyond the current pipeline has been identified.
“The acquisition of East Point Energy represents Equinor’s entry into the US power market through flexible assets. It will enable Equinor to further unlock the potential we see in the renewables space in the US, capturing value from volatility in the power markets and providing reliable services to the grid,” says Olav Kolbeinstveit, senior vice president for power and markets within Renewables at Equinor.
Battery storage will play an important role in the energy transition as the world increases its share of intermittent renewable power. Battery storage is key to enabling further penetration of renewables, can contribute to stabilizing power markets and improve the security of supply. The acquisition will provide us with attractive investment opportunities, and the projects will contribute to lifting the return on our renewable portfolio while at the same time lowering the portfolio risk.
Equinor sees a strong opportunity to create a profitable business by deploying battery storage assets in selected power markets. This is based on the flexible nature of the assets and Equinor’s advanced trading capabilities through the wholly-owned energy trading house Danske Commodities.
The acquisition of East Point Energy is another step in this direction following the 2021 investment in Noriker Power Limited, a leading battery storage developer in the United Kingdom. The acquisition also further diversifies Equinor’s energy offerings in the US, strengthening our role as a reliable supplier of energy. Adding flexible battery storage will complement Equinor’s portfolio of offshore wind, upstream oil and gas and growing opportunities in the hydrogen and CCS space.
East Point Energy has a competent team, that since 2018, has matured and divested a number of high-quality, ready-to-build battery storage projects in the US energy market. East Point Energy will become a subsidiary of Equinor with its team continuing to develop the business, as well as adding capabilities to own and operate energy storage projects in the near future.
“We look forward to working together with East Point Energy to build a portfolio of battery storage assets in the US. This strengthens and diversifies our existing renewable energy offerings in the US, which includes substantial offshore wind projects Empire Wind and Beacon Wind,” says Siri Espedal Kindem, senior vice president for Equinor Renewables US.
“On behalf of the East Point Energy team, I am excited to welcome Equinor as the new owner. We look forward to a long and successful relationship developing, owning and operating energy storage projects in the US,” says Andrew Foukal, CEO of East Point Energy.
The transaction agreements were signed on 9 July and the transaction is planned to be completed in Q3 2022.
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