France-based energy firm ENGIE has announced the signing of a definitive agreement to acquire 100% of Houston-based battery storage company Broad Reach Power, with a focus on facilitating the growth of its renewable energy portfolio.
The transaction involves a multifaceted portfolio encompassing 350 MW of operational assets and 880 MW of assets currently under construction and slated for commissioning by the close of 2024. The company also has 1.7 GW of projects in advanced stages of development and a pipeline of projects in varying stages of conception.
These initiatives are situated across Texas, California, and the central United States.
The company said Broad Reach Power’s teams, tools, and proficiencies align seamlessly with ENGIE’s integrated model, both domestically and globally.
Beyond the immediate advantages, this acquisition plays a pivotal role in ENGIE’s overarching vision of amassing 10 GW of battery capacity worldwide by the decade’s end.
The Group’s existing renewable assets include a total of 5 GW in operation as of 2022, a battery storage portfolio, and an energy management platform.
The transaction, subject to necessary approvals from pertinent competition and regulatory authorities, is anticipated to be finalized during the fourth quarter of 2023.
Catherine MacGregor, ENGIE’s Chief Executive Officer, articulated the significance of this milestone, stating, “This acquisition perfectly aligns with ENGIE’s strategic trajectory: it is a stepping stone towards the development of a low-carbon, cost-effective, and resilient energy ecosystem. In this landscape, the synergy between flexible assets and renewable energies assumes paramount importance.”
In June, sustainable infrastructure investor Actis agreed to sell the entirety of BTE Renewables (BTE) to ENGIE and global investor and asset manager Meridiam. Upon completion of the transaction, ENGIE acquired BTE’s South African renewable project portfolio and team, while Meridiam is set to take ownership of the Kenyan portfolio and team.
Earlier in January, ENGIE said it had raised €2.75 billion (~$2.9 billion) after successfully closing its triple-tranche green bond issue.
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